IRS Desires a “Symbiotic Relationship” With Crypto Firms to Combat Financial Crime

The Wall Street Journal interviewed Thomas Fattorusso, an IRS special agent, on the agency’s strategy for combating crypto crime.

An IRS special agent told the Wall Street Journal that the government wants to collaborate with crypto firms to combat financial fraud. He told the WSJ that a ‘symbiotic interaction’ was the objective.

The Internal Revenue Service (IRS) of the United States hopes to cooperate with crypto firms to combat criminality in the sector. According to the Wall Street Journal, the senior IRS law enforcer said that “cryptocurrency is here to stay” and that the agency would thus want to collaborate with crypto firms.

Thomas Fattorusso, the special agent in charge of the IRS-Additional CI’s York field office, told the WSJ that the IRS’s criminal investigations section was bringing on hundreds of new employees. Fattorusso was not antagonistic towards the asset class, stating, “We cannot be antagonistic towards technology. “We must accept it.”

Additionally, he said that the asset class is getting increasingly credible and sophisticated. As a result, he wants a “symbiotic connection” with crypto businesses.

Fattorusso was also enthusiastic about the agency’s recruiting of younger, more tech-savvy employees who may assist with achieving this objective. This would be of great assistance to the agency, which has recently increased its crypto-related initiatives.

The IRS has just published a fresh version of crypto reporting guidelines for the 2022 tax year. Among the most notable changes is the need for taxpayers to declare NFTs. The draught of Form 1040 also noted that cryptocurrency transactions done through PayPal and Venmo would not need reporting.

Over the years, the IRS has made several changes to tax reporting requirements relating to cryptocurrency. It looks to be creating an asset class-specific rule set.

The Internal Revenue Service does not slack off when it comes to combating crypto-related offences. A court ruling announced in September 2022 authorized the IRS to pursue crypto tax evaders. The John Doe summons pertained to the broker SFOX’s crypto transaction data. This might be the first order of its kind.

It is evident that, like other government agencies, the IRS is intensifying its attempts to regulate the cryptocurrency sector. On the plus side, all of these governing bodies want crypto companies to operate lawfully.

Also Read: Phishing Assault Causes $3.4 Million In GMX Token Losses For A DeFi User