IRS expects to seize billions of dollars in crypto in 2022

According to a senior IRS official, the Internal Revenue Service might take cryptocurrency worth billions of dollars tied to tax evasion and other offenses in the coming year.

According to an IRS criminal investigation annual report released Thursday, the IRS seized $3.5 billion in cryptocurrencies in the fiscal year 2021, accounting for 93 percent of all assets confiscated by tax enforcement that year.

On a conference call with reporters, IRS Criminal Investigation Chief Jim Lee remarked, “I expect a trend of crypto seizures to continue as we move forward into fiscal year ’22.” “As time goes on, we’re seeing crypto engaged in a number of our crimes.”

The IRS’s criminal division has collected billions of dollars in Bitcoin and other virtual currencies in the last year, including $1 billion from the Silk Road, an online Bitcoin market that was shut down in 2013. A former Microsoft Corp. software developer was also convicted for using cryptocurrency to conceal a $10 million embezzlement from the business.

In the infrastructure bill that President Joe Biden signed into law on Monday, Congress gave the IRS new power to monitor cryptocurrency transactions. In an effort to offer tax authorities better access to virtual currency trading, the law would oblige crypto brokers to track and report transactions to the IRS.

The agency might potentially gain from an extra $80 billion in funding proposed by Democrats in Biden’s Build Back Better plan, which could be voted on as soon as Thursday in the House. Lee stated that his team urgently requires funds to hire 250 to 300 additional special agents, as well as invest in systems to detect and track cybercrime.

Movine Oduor