The United States Internal Revenue Service (IRS) is taking crypto tax compliance to the international stage, joining other major tax authorities from four nations to create a strong coalition tasked with fighting crypto-related tax crimes.
Today, crypto trading has reached vanguard levels and can't be waved away as a flop. Many nations are starting to see the fruits of the significant trading volume in the crypto market. This has made the crypto taxes to turn into a big discussion topic across the globe.
The IRS has been at the center of cryptocurrency tax compliance, though it currently looks like the Agency desires to take the struggle to the international stage. The tax payments bring a dire need for full monitoring, enforcement and regulation to guarantee compliance.
The IRS is on the battlefield with other tax authorities from the Australia, UK, Netherlands and Canada and they have already created the Joint Chiefs of Global Tax Enforcement (J5).
The major role of the J5 is to fully contend and tackle transnational tax crimes. The coalition was primarily created in reacting to the call official call from the Organisation for Economic Cooperation and Development (OECD) to decrease tax crimes.
The IRS issued out a statement that:
"We will work together to investigate those who enable transnational tax crime and money laundering and those who benefit from it. We will also collaborate internationally to reduce the growing threat to tax administrations posed by cryptocurrencies and cybercrime and to make the most of data and technology."
The IRS is highly concerned about the simplicity with which crypto transactions can enable tax evasion and many other financial crimes, thereby setting a big need for international corporation amidst national tax bodies.
"We cannot continue to operate in the same ways we have in the past, [sic] siloing our information from the rest of the world while organized criminals and tax cheats manipulate the system and exploit vulnerabilities for their personal gain. Dan Fort, head of the IRS said. "The J5 aims to break down those walls, build upon individual best practices, and become an operational group that is forward-thinking and can pressurize the global criminal community in ways we could not achieve on our own."
The IRS strongly recognises all digital assets such as bitcoin, ethereum as currencies, making them a subject to income tax laws. In the flag up to this year’s tax filing deadline in the United States, the IRS indicated that crypto all-weather traders were seen as either underreporting or failing to report returns from cryptocurrency trading.
However, cryptocurrency maniacs have totally censured the IRS over draconian tax policies associated with cryptocurrency trading and many have raised complaints that the Agency's laws are confusing, instigating the IRS to form more express tax laws for crypto trading.
A lot of bad actors have been hiding undercover of pseudo-invisibility offered by cryptocurrencies to promote various financial crimes and those individuals have to be stopped immediately even though the battle over the individual criminals shouldn't be at the illfare of the honest and innocent crypto dealers.