The IRS Takes a Modern Approach to Crypto

On September 8, the IRS’s criminal investigation division took a substantial leap into the realm of cryptocurrency by signing a hefty contract worth $249,900 with a blockchain analytics firm. While the details remain limited, it’s clear that this move is part of a broader strategy to tighten its grip on the crypto scene.

Meet the Firm: Who’s Behind the Curtain?

The chosen firm, Blockchain Analytics and Tax Software, might not ring a bell like some of its more established competitors such as Chainalysis. In fact, this firm only previously secured a government contract for $9,800, acting as an expert witness for the U.S. Treasury. So, is this a bold or a bewildering choice? Only time will tell!

Trends in Crypto Regulation

This contract isn’t just a one-off. It follows the IRS’s increasing rigor in tracking cryptocurrency. Just last week, the agency put out a call for submissions to pilot a program aimed at monitoring cryptocurrency transactions. It’s like watching a game of chess, but the IRS is playing a very serious game with high stakes!

What’s the Rush? Not a Reaction, says IRS

Interestingly, a staff member at the IRS confirmed to Cointelegraph that this new contract isn’t a knee-jerk reaction to the recent request for submissions. It seems the IRS is on a mission with clear intent!

Capable of Big Moves

The IRS’s investigative capabilities have already shown effectiveness. Just last month, they played a significant role in intercepting crypto intended for terrorist funding. So, it’s not all doom and gloom; at least someone is keeping an eye on the bad guys!

Tax Time: Crypto Will Be Front and Center

As if that’s not enough, this year’s U.S. tax forms have taken a sharp focus on cryptocurrency. They’re making it crystal clear that taxpayers will need to address whether they dabbled in digital coins in 2020. Talk about pressure—your tax forms are now a spotlight on your crypto dealings!