According to a report released by the U.S. Internal Revenue Service on Thursday, the U.S. Internal Revenue Service seized $3.5 billion worth of cryptocurrency in fiscal 2021 – a figure that accounted for 93% of all assets seized by tax enforcement that year.
According to a major agency official, the U.S. Internal Revenue Service may confiscate billions of dollars worth of cryptocurrencies in the coming year, which are related to tax fraud and other crimes.
According to the annual criminal investigation report released by the US Internal Revenue Service on Thursday, the US Internal Revenue Service seized $3.5 billion worth of cryptocurrency in fiscal 2021, which accounted for 93% of all assets seized by tax enforcement that year.
“I expect that as we enter fiscal year 22, the trend of cryptocurrency seizures will continue,” said Jim Lee, Director of the Criminal Investigation Service of the Internal Revenue Service, in a phone call with reporters. “As we move forward, we see that cryptocurrency involves many of our crimes.”
Last year, the crime department of the U.S. Internal Revenue Service seized billions of dollars worth of bitcoin and other virtual currencies, including $1 billion stolen from Silk Road, an online bitcoin exchange that closed in 2013. The department also sued a former Microsoft company. Use cryptocurrency to hide the $10 million software developer that he embezzled from the company.
Congress recently granted the IRS more capacity to oversee cryptocurrency transactions in the infrastructure package that President Joe Biden signed into law on Monday. The law will require crypto brokers to track and report transactions to the Internal Revenue Service, so that tax authorities can better understand virtual currency transactions.
The agency could also benefit from an additional $80 billion in funding proposed by the Democrats in Biden’s “Rebuild Better Plan,” which could receive a vote in the House of Representatives as early as Thursday. Lee said his department desperately needs funds to hire more than 250 to 300 agents and invest in systems that identify and track cybercrimes.