IRS to transition from ‘education to enforcement,’ says former division chief

A previous top private investigator is warning that “a high-stakes video game of chicken” between the Internal Revenue Service (IRS) and cryptocurrency holders who fail to effectively report their profits will be entering a new stage in 2021 as the tax collection firm begins to focus on pursuing “civil and, potentially, criminal penalties.” In an article co-authored by Don Fort today, the previous chief of the Internal Revenue Services (IRS) criminal investigation department stated that while the company till now has focused its resources on notifying the public of proper reporting guidelines, it will now be turning to more stringent “enforcement.”” The IRS has been not-so-quietly positioning itself for a smooth transition from education to enforcement in 2021 and beyond.” The short article keeps in mind that the trail begins with Coinbase, who answered a “John Doe” summons in 2018 and turned over account details on almost 13,000 users– info which might quickly result in crackdowns. The short article discusses the request the IRS made to Luxembourg-based exchange Bitstamp for information on one American user.The focus on crypto holders is in part due to a widening “tax gap”– the rift in between the overall earnings from taxes that need to be paid to the Treasury verses what it really gets– a detach in which Fort and his co-author Lawrence Sannicandro think crypto holders might be playing a major part. “As of Dec. 10, with Bitcoin fresh off brand-new record highs, the market capitalization of cryptocurrencies was $524 billion,” the short article reads. “Assuming cryptocurrency-related tax liabilities of $25 billion and a 50% compliance rate, unreported cryptocurrency tax liabilities once again represent around 3.2% of the $381 billion tax gap. Therefore, it is likely that unreported taxable cryptocurrency transactions are contributing substantially to the tax space.” Ultimately, the post concludes that significant patterns– such as the addition of a question about cryptocurrency now plainly put at the top of form 1040– show that the IRS is tailoring up for widespread efforts to root out underpayment. “Even though the IRS has not yet revealed lots of traditional tax evasion or cash laundering cases including virtual currency, that trend should change in 2021.” Moreover, crypto holders should not attempt to get charming when the tax man comes calling. “History has revealed that undervaluing the government is a fools game.” Title: IRS to shift from education to enforcement, says previous division chiefSourced From: cointelegraph.com/news/irs-to-transition-from-education-to-enforcement-says-former-division-chiefPublished Date: Sun, 03 Jan 2021 18:48:25 +0000

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Jeannine Cruz– Earnings I am known as Jeannine Cruz, I am a writer and an industrialist by profession. My age is 32 years. My aim is to gather the attention of the targeted audience without being boring and unexciting. I like to utilize the free time in writing my views and thoughts for my book lovers or readers. My most preferred articles are usually about finance and business; however, I have written various topics in my articles. I do not have a specific genre. I get very creative when I have to express myself, I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.

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