New Report: Virtual Currency Tax Compliance Enforcement Can Be Improved

Virtual currency (or digital assets) has grown into a trillion-dollar industry that's been challenging for the IRS to enforce for tax compliance. Our latest report looks at the agency's efforts to identify income earned from virtual currency transactions.   Why did we do this audit? Between April 2020 and July 2023, the number of virtual currencies grew 420 percent. The anonymity of virtual currency and the fact that trading platforms don't consistently give reports to the IRS on virtual currency transactions complicates enforcement efforts. What did we find? IRS Criminal Investigation has taken advantage of analytics tools to address virtual currency noncompliance. During Fiscal Years 2018 to 2023, they investigated 390 cases involving virtual currency/digital assets, and 224 were recommended for prosecution. The IRS established "Operation Hidden Treasure" to identify taxpayers who omit digital assets from their tax returns. However, we found it's been limited to the acquisition of tools and training, rather than pursuing taxpayers. The project's charter did not include any specific enforcement deliverables pertaining to either criminal investigation or civil examination results and success statements identifying what it sought to achieve.     Read the full report for more details Having trouble viewing this email? View it as a Web page.

Treasury Inspector General for Tax Administration 901 D Street, SW, Suite 600 Washington, D.C. 20024-2169 SUBSCRIBER SERVICES: Manage Subscriptions  |  Unsubscribe All  |  Help

---

This email was sent to jtrent238.test@blogger.com using GovDelivery Communications Cloud on behalf of: Treasury Inspector General for Tax Administration · 901 D Street, SW, Suite 600 · Washington, D.C. 20024-2169 · (800) 366-4484