If you’re thinking you can dodge the taxman using bitcoin or other cryptocurrencies, you may want to think again. Instead, get in touch with the Fort Lauderdale accountants at Sterling Accounting.
That’s because the IRS has designated a special team to go after cryptocurrency tax evaders. According to Bitcoin.com:
In an interview, IRS chief Don Fort revealed how the Criminal Investigation Division, which he heads, has added 10 new investigators. “It’s possible to use Bitcoin and other cryptocurrencies in the same fashion as foreign bank accounts to facilitate tax evasion,” he said. Bloomberg reports how the Criminal Investigation Division has actually lost key staffers since 2011 on account of budget cuts. The recruitment of 10 new staffers will see the division returned to full strength, complete with its own crew of blockchain experts.
The range of blockchain tools available to U.S. investigators is getting more numerous and sophisticated. Companies such as Bitfury have earned ire from the crypto community for their willingness to work hand in glove with law enforcement to scrutinize blockchain activity, clustering related addresses together and highlighting suspicious activity. The company’s advisor, Jason Weinstein, a former DOJ investigator, crowed: “Having a traceable public ledger of every bitcoin transaction ever conducted allows law enforcement to ‘follow the money’ in a way that would never be possible with cash.”
The best course of action when it comes to taxes, whether they involve cryptocurrency or more traditional money, is to consult with a tax expert like the Fort Lauderdale accountants of Sterling Accounting.
Whether you need a simple 1040EZ tax filing or a 1040, we can handle it all for you. We provide innovative solutions for tax issues to minimize your tax liability and find deductions commonly overlooked. We stay up-to-date and well informed on all tax laws and legislation.
We offer advice on both short-term and long-term tax strategies, initiatives and investments. Our tax service is designed exclusively to help you maximize your earning power!