IRS building 'hundreds' of crypto cases, ramping up hiring: Bloomberg Tax
Quick Take
- The IRS is developing “hundreds” of soon-to-be-public cases involving crypto.
- The cases being built reportedly involve crypto-to-fiat “off-ramping” transactions, as well as individuals being paid in crypto.
The United States Internal Revenue Service is developing "hundreds" of soon-to-be-public cases involving crypto, according to a Bloomberg Tax report citing division chief Jim Lee.
The cases being built reportedly involve crypto-to-fiat "off-ramping" transactions, as well as individuals being paid in crypto and not reporting it as income.
The report follows news that the IRS was granted the power to issue a "John Doe" summons to M.Y. Safra Bank. This provided the tax authority with the ability to obtain data on customers of the bank's partner and crypto prime broker, SFOX.
In March, an IRS official said to "expect more" broad information requests to crypto exchanges — such as those previously seen involving Coinbase, Kraken and Circle.
The IRS has notably made clear its plans to ramp up hiring across the agency. Lee has now said the tax authority is expecting a "more significant" hiring increase for the remainder of the fiscal year.
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