The Internal Revenue Service is considering cryptocurrency taxation a high enforcement priority, but it may need to offer more concrete guidance before moving forward with its enforcement activities, says one expert.
According to tax attorney Guinevere Moore, the IRS is equipping its employees with knowledge on blockchain and dedicating special agents to collect cryptocurrency taxes. The agency may also believe there’s a serious tax law violation issue among cryptocurrency holders, hence the heavy involvement of its criminal investigation team in enforcing cryptocurrency taxation. As previously reported by The Block, the IRS is sending out 10,000 letters to cryptocurrency holders, urging them to report their digital assets and pay taxes properly.
Author: Celia Wan