Bitcoin Dives As IRS Moves to Block Crypto Tax Evasion

It has been a bloody Monday as Bitcoin (BTCUSD) and other major cryptocurrencies are all in the red. This follows the news of the collaboration between the US Internal Revenue Service (IRS) and other tax agencies in the UK, Canada, Netherlands and Australia to block evasion of taxes on cryptocurrencies.

The task force to be known as the Joint Chiefs of Global Tax Enforcement or J5 for short, will share information as to the cryptocurrency traders from each of these countries who are evading the payment of tax on profits from cryptocurrency trades. The countries mentioned above have classified cryptocurrencies as assets, leaving them subject to taxation.

The IRS will also specifically look at those who are channeling payments into cryptocurrencies so as to use this avenue to avoid paying due taxes.

Ryan Korner, a senior agent with the LA office of the IRS’s Criminal Investigations office recently indicated to reporters that the agency now has the tools to track the movements of such…