Earlier this week, the Joint Chiefs of Global Tax Enforcement – the leaders of tax enforcement authorities from Australia, Canada, France, the Netherlands and the United States, together known as the "J5" – announced that Dutch authorities had arrested two men in connection with two criminal investigations on suspicion of money laundering using cryptocurrencies. The arrests come as the IRS has reportedly invited cryptocurrency companies and advocates to a March 3 summit to discuss how the agency can "balance taxpayer service with regulatory enforcement." The focus of the summit will be discussing the IRS' existing approach to taxing cryptocurrencies and new enforcement efforts.
A recently published study by the U.S. Government Accountability Office (GAO) found that additional information reporting and clarified guidance could improve cryptocurrency tax compliance. Among other things, the report found that steps to increase third-party information reporting on virtual currency transactions could help the IRS provide taxpayers with useful information for completing tax returns and give the agency an additional tool to address noncompliance.
For more information and related news, please refer to the following links:
- J5: Arrests made in two investigations into money laundering using cryptocurrencies
- IRS, Cryptocurrency Groups to Meet Amid Agency Enforcement Push
- The IRS Is Inviting Crypto Firms to a 'Summit' in DC Next Month
- GAO: Virtual Currencies: Additional Information Reporting and Clarified Guidance Could Improve Tax Compliance