IRS Criminal Investigation Division is accepting more crypto tax evasion cases

Jim Lee, head of the criminal division of the US Internal Revenue Service, stated that cases related to cryptocurrency tax evasion are on the rise. Lee said that three years ago, the vast majority of ongoing cryptocurrency investigations (over 90%) involved money laundering. However, in the past year, about half of the digital asset investigations involved taxes/ tax evasion.

According to the latest annual report covering October 1, 2022 to September 30, 2023, these investigations cover a range of issues, including taxpayers failing to report capital gains or income from mining activities, individuals intentionally not disclosing their cryptocurrency holdings, and more.