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IRS Criminal Division Shifts Focus To Crypto Tax Evasion Cases

The IRS Criminal Investigation (CI) Division is preparing hundreds of cases and increasing enforcement related to crypto tax evasion and off-ramping transactions involving exchange of digital assets for fiat currency.


Division Chief Jim Lee announced on a press call that there has been a major shift in digital asset investigations over the past three years from predominantly focusing on criminal crypto money laundering to now about half of the investigations focus on tax evasion cases.


These investigations are zeroing in on those taxpayers who are paid in crypto but do not report transactions and fiat-based laundering.


The agency’s relatively new Office of Cyber and Forensic Services “brings together our digital asset investigation, cybercrime investigation, digital forensics, and physical forensics support efforts under the same roof” to effectively attempt to trace every crypto transaction, according to the IRS CI’s 2022 annual report.


Kugelman Law crypto tax professionals are experienced with recreating missing trading data and dealing with high volume and complex trading activity. Let our team of experienced California cryptocurrency attorneys and tax accountants bring you into compliance or defend you in a potential audit.


The team at Kugelman Law is an industry leader in accounting, reporting, and audit representation for cryptocurrency matters. Contact us today to discuss the best strategies for your cryptocurrency case.

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