The IRS plans to interview family and friends, search through social media posts, and issue subpoenas to ensure people pay taxes on their Bitcoin, according to a presentation given to the IRS Criminal Investigation division. Top companies including Apple, Google, and Microsoft are also under the gamut of these investigations.
The IRS is going to great lengths to identify and prosecute cryptocurrency-facilitated tax crime. In a 181 slide presentation, James Daniels, the IRS-CI cyber crimes program manager, details the usage, ecosystem, and technology behind top cryptocurrencies (including Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, Stellar, and Monero).
What’s alarming are the recommendations provided to IRS agents for obtaining information from taxpayers.