According to the IRS, the tax agency is putting a significant amount of effort into fighting tax evasion that stems from cryptocurrency use.
The U.S. Internal Revenue Service (IRS) has revealed the agency is cracking down on “dozens” of cryptocurrency users evading taxes. The IRS has partnered with tax agencies from four other countries in order to make sure tax enforcement strategies are being applied across the map.
According to Bitcoin.com, this week the IRS disclosed they had a meeting with four other nation states so they can partner together to fight cross-border tax evasion stemming from digital currency users. The five-country group is called the Joint Chiefs of Global Tax Enforcement or J5.
The Joint Chiefs of Global Tax Enforcement (J5) Group
The J5 includes the Australian Criminal Intelligence Commission (ACIC) and Australian Taxation Office (ATO), the Canada Revenue Agency (CRA), the Dutch Fiscale Inlichtingen- en Opsporingsdienst (FIOD), the British HM Revenue and Customs (HMRC), and the American Internal Revenue Service Criminal Investigation (IRS-CI).
Reports says that after sending 10,000 letters to American taxpayers, the IRS now has plans to start a new wave of tax audits and criminal investigations. The tax agency warns that the effort is quite serious and people avoiding taxes via cryptocurrencies may be subject to tax evasion charges and penalties on the gains tied to virtual investments.