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Technology IRS Says ‘Dozens’ of New Crypto, Cybercriminals Are Identified

21:55  08 november  2019
21:55  08 november  2019 Source:   bloomberg.com

Tether, Not Bitcoin, Likely the World’s Most Used Cryptocurrency

  Tether, Not Bitcoin, Likely the World’s Most Used Cryptocurrency What’s the world’s most widely used cryptocurrency? If you think it’s Bitcoin, which accounts for about 70% of all the digital-asset world’s market value, you’re probably wrong. While concrete figures on trading volumes are hard to come by in this often murky corner of finance, data from CoinMarketCap.com show that the token with the highest daily and monthly trading volume is Tether, whose market capitalization is more than 30 times smaller. Tether’s volume surpassed that of Bitcoin’s for the first time in April and has consistently exceeded it since early August at about $21 billion per day, the data provider says.

(Bloomberg) -- The IRS’s criminal division identified “dozens” of potential cryptocurrency tax evaders or cybercriminals after a meeting this week with tax authorities from four other countries.

Cryptocurrency mining rigs operate in a cargo container at the Golden Fleece cryptocurrency mining company in Kutaisi, Georgia, on Monday, Jan. 22, 2018. Golden Fleece uses a cargo container with Chinese-built computers inside a dilapidated Soviet-era tractor factory to extract cryptocurrencies using low-cost electricity generated by water flowing from the nearby Caucasus Mountains.© Bloomberg Cryptocurrency mining rigs operate in a cargo container at the Golden Fleece cryptocurrency mining company in Kutaisi, Georgia, on Monday, Jan. 22, 2018. Golden Fleece uses a cargo container with Chinese-built computers inside a dilapidated Soviet-era tractor factory to extract cryptocurrencies using low-cost electricity generated by water flowing from the nearby Caucasus Mountains.

Officials from the U.S., U.K., Australia, Canada and the Netherlands -- known as the Joint Chiefs of Global Tax Enforcement -- shared data, tools and tax enforcement strategies to find new leads in a quest to mitigate cross-border money-laundering, tax evasion and cybercrime.

Cryptocurrency Investors Get New IRS Income-Reporting Rules

  Cryptocurrency Investors Get New IRS Income-Reporting Rules Cryptocurrency holders know more about what the Internal Revenue Service expects to see on their tax returns, thanks to new guidance from the agency. The IRS released a ruling and a question-and-answer document Wednesday that tell virtual currency investors and their tax advisers how the agency expects them to report income from their holdings. The guidance is the first since 2014 and comes as tax auditors are increasingly focusing on examining individuals with cryptocurrency investments.

The IRS’s cybercrime unit has developed expertise in “who is moving the money and where it’s going,” Ryan Korner, a senior special agent in the IRS’s Criminal Investigations office in Los Angeles, said in a call with reporters Friday. “We have tools in place that we didn’t have six months or a year ago.”

The effort is part of the Internal Revenue Service’s renewed focus on fighting tax evasion tied to cryptocurrency as digital currency has become more popular and gained in value. The agency has struggled in recent years to enforce tax laws and keep up with criminals as technology has advanced.

Crypto Portfolio Will Analyze Twitter to Gauge Trader Sentiment

  Crypto Portfolio Will Analyze Twitter to Gauge Trader Sentiment The crypto market, known as one of the most rabid topics for discussion on Twitter, is getting a new tool to help gauge investor sentiment -- using tweets. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); On Tuesday, the trading platform eToro launched a sentiment-based portfolio that uses AI tools to analyze Twitter for the latest positive or negative perceptions of digital assets.

“Tax fraud is not a new crime, but the sophistication with which criminals commit tax fraud has significantly increased through cyber-related activities in recent years,” the joint chiefs said in a statement. “Data breaches, intrusions, takeovers and compromises are the new tools that criminals use to commit tax crimes.”

Cyber Audits

The IRS is preparing for a new wave of cryptocurrency audits. The agency sent letters to more than 10,000 people earlier this year, warning that they might be subject to penalties for skirting taxes on their virtual investments.

The IRS and its partners are using data from previous enforcement activities to find new criminals, Korner said. Using the data from the five countries gives them a broader view of how accounts, money and people are connected.

“That data doesn’t go and sit. We use that data,” Korner said.

The IRS released guidance last month telling virtual currency investors and their tax advisers how the agency expects them to report income from their holdings. The guidance is the first since 2014 and comes as tax auditors are increasingly focusing on examining individuals with cryptocurrency investments.

Until the recent guidance, investors and their tax advisers had to make educated guesses about how to report income and pay taxes from virtual-currency transactions. Some taxpayers didn’t report their transactions at all.

To contact the reporter on this story: Laura Davison in Washington at ldavison4@bloomberg.net

To contact the editors responsible for this story: Joe Sobczyk at jsobczyk@bloomberg.net, Steve Geimann, Gregory Mott

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

IRS stops firms like TurboTax from hiding free tax-filing products in searches .
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