In a recent interview with the Wall Street Journal (WSJ), Thomas Fattorusso, a special agent at the Internal Revenue Service (IRS) field office in New York, stated that the agency wants to have a “symbiotic relationship” with crypto-related firms.
The IRS believes that such close ties would help to combat the issue of financial crime. According to the WSJ, Fattorusso noted that crypto is here to stay. Hence, the IRS wants to partner with crypto firms.
IRS Wants To Partner With Crypto Firms
Fattorusso told the WSJ that IRS’s criminal investigation department wants to hire hundreds of personnel to achieve its goal. The special agent did not have a negative attitude about the asset class, based on his statement:
He said, “we cannot be antagonistic to the technology. We need to accept it.” Also, he said that digital assets are becoming more sophisticated every day.
As a result, the IRS believes a partnership with crypto firms will help solve specific issues. “We are always working towards having a symbiotic relationship with crypto companies. This industry is new to everybody, and we are all trying to find our way around it,” he added.
Additionally, Fattorusso expressed optimism about the agency hiring younger, tech-savvy employees. According to him, the world is changing, and new technologies are coming up every day.
He believed these companies would help the agency to achieve its goals and boost its crypto-related operations. Besides, the agency has tightened its scrutiny of the crypto sector to drive out crypto tax defaulters.
IRS Includes Reporting of NFTs To Tax Form
Last year, the revenue agency published a draft of new guidelines for reporting crypto tax in 2022. One of the biggest changes is that taxpayers now need to disclose details of their NFT transactions.
However, according to the draft, cryptocurrency transactions done via Venmo and PayPal would not require reporting. Generally, the IRS has revised tax reporting for crypto several times in recent years.
The organization is reportedly forming comprehensive rules for the asset. Meanwhile, the IRS has not slacked in dealing with crypto-related tax defaulters. In September 2022, a court order enabled the agency to go after crypto tax defaulters.
An example is the John Doe summons concerning the crypto transactions of the SFOX broker. There might be more of such orders in the future.
Like other regulators in the US, the IRS is gearing up efforts to regulate the crypto sector. Fortunately, most of these authorities are not against the operations of crypto entities as long as they are within the confines of the law.