Top IRS official says ‘pure crypto tax crimes’ on the rise alongside scams

Top IRS official, Guy Ficco, has revealed that there is a growing trend of taxpayers committing tax crimes involving cryptocurrency. Ficco, the head of IRS criminal investigation, stated that the agency has noticed an increase in “pure crypto tax crimes” falling under federal income tax violations. These crimes entail the failure to report income from cryptocurrency sales and the concealment of one’s actual basis in cryptocurrency. Ficco expects the trend to continue, with an uptick in tax-reporting crimes anticipated this year and beyond. While IRS investigations have predominantly centered around broader crypto crimes like scams and embezzlement, Ficco emphasized that cryptocurrency is becoming more prevalent and will likely play a larger role in various types of crimes. The IRS recently reminded individuals of their obligation to report taxes for crypto transactions, but past reports indicate that many are still failing to comply. To strengthen tax enforcement efforts, the IRS has recently hired two crypto experts, raising expectations for increased scrutiny in the future. Ficco’s predecessor, Jim Lee, also emphasized the growing focus on tax-related issues within crypto investigations.