RATE Group | The IRS Is Hiring Consultants To Crack Down On Cryptocurrency Tax Evasion
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The IRS Is Hiring Consultants To Crack Down On Cryptocurrency Tax Evasion

30 May The IRS Is Hiring Consultants To Crack Down On Cryptocurrency Tax Evasion

Posted at 09:28h in Cryptocurrency News by

On May 12, 2020, the IRS sent out a statement of work (SOW) requesting help from independent consultants to crack down on cryptocurrency tax non-compliance. According to the SOW, the IRS is seeking help from technology companies in the crypto tax software space in reconciling taxpayers’ reported cryptocurrency gains and losses on the tax returns. The process includes using software to systematically obtain cryptocurrency transactions data through exchanges, wallets, API keys, blockchain data, and other sources and creating a detailed tax report for the taxpayers under consideration.

It is likely that the service would compare information reported by taxpayers on their tax returns with the software generated output from technology consultants. If there are any discrepancies, further conversations or audits would take place with the taxpayers. Taxpayers who would be subject to this process could range from…

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