Law Firm Predicts More Lawsuits by the IRS Against Crypto Tax Evaders
The IRS is actively cracking down on cryptocurrency users in the United States. Klasing Associates, a US law firm, expects there to be even more prosecutions in this department.
When law firms weigh in on these matters, something must be brewing behind the scenes.
Don’t Mess With the IRS
According to Klasing Associates, the IRS will continue to crack down on crypto users.
Especially those who try to evade taxes will find themselves in legal trouble sooner rather than later.
If true, such a move by the IRS would not come as too big of a surprise.
The agency has sent out Form 1040 with additional crypto-related questions for recipients to answer.
While most people will answer the questions honestly, some will try to game the system and risk it all.
Cracking down on those users filing bogus reports is a logical course of action.
Evading taxes is not what cryptocurrencies are designed for, or even useful for.
The transparent nature of public blockchains makes it impossible to avoid detection for long.
For the IRS, there is still a lot of work to do behind the scenes as well.
Finding a balance between enforcing regulation and taxpayer services will remain an ongoing challenge for the foreseeable future.
Image(s): Shutterstock.com
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JP Buntinx, Khareem Sudlow