The United States Internal Revenue Service (IRS) criminal investigation chief, Guy Ficco, has highlighted an anticipated increase in cryptocurrency-related crimes. In an interview at the Chainalysis Links event in New York, Ficco mentioned a rise in “Title 26 crypto cases” expected in 2024, just days before the deadline for filing crypto taxes in the US.

Title 26 of the United States Code focuses on combatting tax evasion, which involves actions like underreporting income or hiding money offshore. Ficco noted that cryptocurrencies were previously used for financial crimes like fraud and money laundering, but there has been a recent surge in “pure crypto tax crimes.”

The IRS has partnered with Chainalysis and law enforcement agencies to tackle these issues. Ficco emphasized the need for special tools to trace cryptocurrency transactions, praising the expertise of organizations like Chainalysis in this regard.

Recent developments include the IRS becoming more aggressive in investigating cases of unreported crypto taxes. Ficco’s comments align with a federal grand jury indictment of a Texas citizen for filing false tax returns on Bitcoin gains worth over $4 million.

Global regulators are also actively refining taxation efforts for digital currencies. Japan’s Liberal Democratic Party has called for immediate crypto tax reforms, while South Korea’s Gyeonggi province recovered $4.6 million in unpaid taxes from crypto defaulters in February 2024.

To strengthen crypto supervision, the IRS has hired executives from ConsenSys, Binance US, and TaxBit. Stay informed about the latest news and updates on cryptocurrency taxes on Global Crypto News.

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