On Tuesday, the IRS said it had hired two cryptocurrency industry executives to help with enforcement programs, compliance and reporting on digital assets.
One of them is Sulolit “Raj” Mukherjee, former global director of tax at ConsenSys and Binance. Additionally, Mukherjee was a member of both Coinbase and the Blockchain Association. Previously, Seth Wilks, the other director, served as vice president of government relations at TaxBit, a crypto tax software company.
In its annual report for October 2022 to September 2023, the IRS said the number of digital asset tax investigations had increased. This included unreported cryptocurrency income , such as wages and rents, as well as capital gains on cryptocurrency sales and mining.
The tax authority is currently creating new regulations to improve enforcement. It would require cryptocurrency exchanges and brokers to report details of their customers’ transactions to the US government.
Cryptocurrency brokers will be required to follow the same rules as securities brokers. This includes disseminating information returns and recipient statements to traders and customers.
As of January 1, new IRS regulations require cryptocurrency brokers to disclose personal information on transactions worth more than $10,000 within 15 days. Aimed at increasing transparency and preventing tax evasion, the regulations have received criticism for being ambiguous and difficult to comply with.
