IRS Wants $32M in Funding to Enforce Crypto Taxation, Hire Contractors

The IRS has outlined different ways that $32.3 million in additional funding will bolster the agency's crypto tax collection efforts.

Jun 9, 2021 at 3:14 a.m. UTC
Updated Sep 14, 2021 at 1:08 p.m. UTC

The Internal Revenue Service's (IRS) Criminal Investigation Division (CI) wants millions more in funding to pursue cryptocurrency tax evasion.

According to the tax agency's Congressional Budget Justification & Annual Performance Report and Plan, the IRS has outlined a number of avenues that $32.3 million in additional funding will bolster the agency's crypto tax collection efforts.

These include expanding the use of specialized contractor support services provided by a group of cyber/crypto experts and building an internal dashboard for blockchain analytics.

If approved, the funding will also go towards hiring private sector expertise in applied analytics, cybercrime, forensic accounting, investigative support and related consulting services, according to the report.

The $32.3 million figure the tax agency is seeking forms part of a much larger budget request of $13.2 billion for the 2022 fiscal year, an increase of $1.2 billion, or roughly 10%, from the previous year.

U.S. President Joe Biden plans to inject $80 billion into the IRS over the next 10 years to expand the agency's enforcement staff and equip them with new tools to fight against tax dodgers.

The Biden administration also recently outlined several new crypto reporting requirements in a 2022 budget proposal, published last month.

The budget included two proposals that took aim at "broker information reporting with respect to cryptocurrency assets” and a “comprehensive financial account reporting” structure for tax compliance purposes. The second proposal would require financial institutions to report data on user accounts transacting above a $600 threshold.


Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
After the Terra Meltdown: What's Next for Stablecoins?

The largest token collapse in crypto history. So let Luna die.

The largest token collapse in crypto history. So let Luna die.

CoinDesk - Unknown
2
CoinDesk - Unknown
5 Key Takeaways From a16z's State of Crypto Report

The venture firm is extremely bullish on Web 3.

The venture firm is extremely bullish on Web 3.

CoinDesk - Unknown
3
CoinDesk - Unknown
Regulators Are Paying Attention to UST

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

CoinDesk - Unknown
4
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown