Internal Revenue Service (IRS) Finds Ways to Track Cryptocurrency Tax Avoidance

According to the recent meeting with tax authorities of different countries, the Internal Revenue Service (IRS) of the United States finds various ways to track the cryptocurrency criminals that are not paying taxes.

The authorities from the US, Australia, Canada, UK, and the Netherlands combined known as the Joint Chiefs of Global Tax Enforcement participated in the meeting. They shared their experiences regarding digital currency tax avoidance. Now, they are relieved that the IRS got a solution to their problems.

A special agent at the Criminal Investigations Office of IRS, Ryan Korner, said that now, they have specific tools and methods to catch the tax-avoiding criminals. They can also track the suspects that are connected with pending cases. According to the tax authorities, tax-related fraud is nothing new, but the way of criminals attempting the crime by cyber activities have been increased in recent years.

At the beginning of this year, the US tax agency warned many people that digital activities would be taxable. The meeting is to make sure that cryptocurrency users are paying the tax or not.

In the previous month, an amendment was reported to one of the taxation documents of the IRS. According to the form 1040, it will ask the individual about the purchasing, selling, sending, exchanging, or acquiring a financial interest in the digital currency.

The US tax authority released guidance for the cryptocurrency users to report about their tax. In previous years, the lack of clarity between the IRS and the individuals caused considerable confusion, and now, it is affecting the IRS. According to the reports, the agency will again send letters to the digital currency users in summer as a notice to pay tax.

To avoid taxable income, you must choose options that can provide you tax free returns or low tax rates. Although, If you want to take benefit from tax free returns and how your savings could grow in the future, Please check out TFSA calculator.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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