Cryptocurrency U.S IRS 4 Jul 2018
US Tax Authority forms international task force for crypto crime, which will focus on "reducing the growing threat to tax administrations posed by cryptocurrencies and cybercrime."
4 July, AtoZ Markets – The US Internal Revenue Service (IRS) has established an international taskforce together with tax enforcement authorities from four other jurisdictions to handle the cryptocurrency-related crimes.
According to the official press release, the new organization is entitled ‘The Joint Chiefs of Global Tax Enforcement,’ or ‘J5.’ It now includes tax enforcement agencies from five different countries - Australia, Canada, the Netherlands, and the United Kingdom, and the US.
The agencies will collaborate on criminal and intelligence investigations in a bid “to reduce the growing threat to tax administrations posed by cryptocurrencies and cybercrime.” The coalition will also focus on money laundering and a transactional tax crime.
As per the IRS, the decision to create a transactional taskforce was primarily a response to the intergovernmental Organisation for Economic Co-operation and Development (OECD)’s call to action. The latter has urged the countries to increase their efforts against the tax criminals. The Chief of the Internal Revenue Service-Criminal Investigation (IRS-CI), Don Fort, has stated that a multilateral effort “can pressurize the global criminal community in ways we could not achieve on our own."
Back in February, the IRS-CI has formed a team of 10 new investigators to step up its pursuit of those, who use cryptocurrencies to evade taxes. The IRS has also participated in a joint action with the US Department of Justice (DOJ) and the FBI in crypto-related criminal cases.
One of the key outcomes of this collaboration comes in face of charges against one of the websites, namely Backpage.com. The company has been allegedly charged with laundering half a billion dollars in illegal profits.
Earlier this June, the FBI has reportedly confirmed that it has been running 130 cryptocurrency related investigations. The Special Agent Kyle Armstrong of FBI Supervisory has spoken on the Crypto Evolved Conference in New York.
Kyle Armstrong has stated that the FBI is now examining a variety of crimes, which include human trafficking, kidnapping and ransomware, and drug transactions, that involve a cryptocurrency component.
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