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IRS seeks millions in fresh funding to expand crypto tax enforcement and hire outside experts

The Internal Revenue Service’s latest Congressional Budget Justification & Annual Performance Report and Plan outlines specific ways through which the U.S. tax regulator will enhance its crypto enforcement efforts.

The post IRS seeks millions in fresh funding to expand crypto tax enforcement and hire outside experts appeared first on The Block.

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The Internal Revenue Service’s latest Congressional Budget Justification & Annual Performance Report and Plan outlines specific ways through which the U.S. tax regulator will enhance its crypto enforcement efforts.

As outlined in the IRS budgeting report for the fiscal year 2022, the IRS will employ an array of specialized contractors to boost its internal efforts. In practice, the increased funding will be used to award more contracts to firms that can assist the tax regulator in its enforcement of crypto-based tax evasion.

In total, the IRS is seeking $13.2 billion for the 2022 fiscal year, an increase of $1.2 billion compared to the 2021 fiscal year. On the enforcement side, the IRS is asking for $5.46 billion — a year-over-year increase of $458 million. 

Within that figure, the IRS wants an additional $32 million to boost its crypto and cyber operations, including funds to hire personnel and build out a full internal dashboard for cryptocurrency and blockchain analytics. The project is already underway, per the report.

“In IRS-CI’s Western CCU, a specialized contractor assists in the development efforts to build an internal, CI-owned dashboard, called STRIKES, for cryptocurrency/blockchain analytics,” said the report. “This tool harnesses the power of existing vendor products to combine them and take advantage of the strengths each provides.”

Leaning on contractors

Of the $32 million in boosted funding for crypto/cyber operations, $23 million would be spent on “contractor services.”

In a broader sense, the report indicates that the agency wants to establish a “One-IRS” approach to crypto noncompliance, which would include contractors generating leads on illegal crypto activity.

“Partnering with other IRS business units, this contract would bring on investigators to provide illicit activity pattern identification and monitoring,” said the report.

The agency goes on to note:

“Paired with extensive intelligence gathering, these contractors would supply proactive lead generation around tax compliance and illegal activities involving cryptocurrency. Additionally, these contractors would be strategically positioned within the ACDC facility to leverage training and subject matter expertise. The plan would be to expand the scope of work and reassess the return on investment each year to determine continuation.”

Broader context

The document’s contents are significantly more detailed than those contained in the so-called Green Book, published in late May by the Biden administration as part of the federal budget process.

In that document, U.S. officials outlined proposed changes to crypto-related data reporting for industry businesses, including exchanges and custodians.

The Biden administration has positioned its crypto tax efforts in the broader context of the so-called tax gap, or the difference between the total estimated obligations among U.S. taxpayers and the actual amount collected each year.

“Through IRS enforcement efforts and strategies for meeting the needs of taxpayers, the IRS intends to decrease the tax gap,” the justification report notes.

In April, Commissioner Charles Rettig told Congress that reporting requirements for cryptocurrency could be a significant help in closing the tax gap.

Senator Rob Portman of Ohio indicated that legislation focused on this area is also in the works, though to date any prospective bill has yet to be made public.

“We’re working on a cryptocurrency bill that would define cryptocurrency for tax purposes and try to provide appropriate reporting rules,” Portman said at the time.

Proposed reporting changes

With or without Congress, the IRS plans to establish some unified framework at least as it relates to broker reporting.

The budget justification indicates that information reporting for crypto exchanges is incoming. After a discourse on the importance of 1099-K broker reporting for financial institution accounts, the report says “similar reporting requirements would apply to crypto asset exchanges and custodians.”

The IRS also confirmed to The Block that “proposed regulations regarding information reporting on virtual currency under §6045 are on this year’s priority guidance plan.”

Rule 6045 describes requirements related to broker reporting. Many traditional firms utilize form 1099-K, and some crypto exchanges have filed the form in the past. However, because it does not track cost-basis, many argue it’s not the best choice for crypto since it’s led to confusion before — including when the IRS mistakenly sent out warning notices to Coinbase users.

Instead, Form 1099-B has emerged as the gold standard, since it does track cost basis, and some exchanges have already begun to file the forms ahead of possible guidance.

Industry sources have told The Block that, based on current regulatory chatter, Form 1099-B has emerged as the likeliest contender for a final standard. 

Transfers of crypto trigger taxable events, and establishing the cost of initial purchase to calculate gains and loss is key to 1099-B reporting. However, it may take firms some time to get on the same page, since establishing a cost basis across platforms can be challenging since crypto that arrives on a platform may not have been originally purchased there. But the IRS has already indicated ahead of any guidance that it expects the crypto space to find a solution:

“Separately, reporting requirements would apply in cases in which taxpayers buy crypto assets from one broker and then transfer the crypto assets to another broker, and businesses that receive crypto assets in transactions with a fair market value of more than $10,000 would have to report such transactions.”

Any guidance requiring this reporting would be effective for tax years beginning after December 31, 2022. The IRS has declined to comment on the timing of any coming guidance, but any new requirements will be subject to a comment period before final approval.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Source: https://www.theblockcrypto.com/post/107590/irs-seeks-millions-in-fresh-funding-to-expand-crypto-tax-enforcement-and-hire-outside-experts?utm_source=rss&utm_medium=rss

Blockchain

QuadrigaCX and missing Bitcoin: Did Gerald Cotten ‘fake his own death’?

What happens when a crypto millionaire, the founder of one of Canada’s top crypto exchanges with secret access to $180 million in Bitcoin and other digital assets “dies” at the age of 30 under s

The post QuadrigaCX and missing Bitcoin: Did Gerald Cotten ‘fake his own death’? appeared first on AMBCrypto.

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What happens when a crypto millionaire, the founder of one of Canada’s top crypto exchanges with secret access to $180 million in Bitcoin and other digital assets “dies” at the age of 30 under suspicious circumstances? Well, for one, numerous stories around the mysterious death of this young mogul start mushrooming, as banks, investors, and the Reddit forces tried to track down the locked-in assets. 

In a recent Unchained podcast, cryptocurrency expert Aaron Lammer who has spent two years investigating the bizarre circumstances around Cotten’s death breaks down how the events unfolded and addressed the most asked question: “Is Gerald Cotten still alive”

While many might brush the Quadriga case as just another exit scam, according to Lammer it’s the “the Mount Rushmore of crypto scams”. He stated:

“There’s just never going to be a story that tops this. This one is the Mount Rushmore of crypto scams, not because of its scale, even Mount Gox was big but simply the audacity of the whole thing.”

The story so far 

QuadrigaCX was operated by Quadriga Fintech Solutions and was believed to be Canada’s largest cryptocurrency exchange. In 2019, following its founder’s death, the exchange ceased operations and was declared bankrupt with $215.7 million in liabilities and about $28 million in assets.

Gerald William Cotten, the company’s CEO, and founder died in India in December 2018 with around $250 million owed to 115,000 customers in cold wallets whose password was known only by Cotten.  After Gerald Cotten’s death in India, which was “somewhat mysterious to begin with” according to Lammer, a lot of fuss around the assets locked in his cold wallet began.

Things got weirder when it was revealed that he had not left behind the passwords to unlock the cold storage wallets, which he had earlier claimed would arrive through a dead man switch if anything happens to him. Later on, when Taylor Monahan, revealed that not only were these cold storage wallets locked, they were empty and had been so for some time, people started getting more skeptical about Cotten’s sudden alleged demise.

What Lammer really did in his show was address two mysteries:

-what really happened to Gerald Cotten?

-what happened to all of that money that was missing?

Missing money and the mysterious death

According to Lammer, Cotten’s deep experience with VPNs and Tor, and cloaking where he was online, as well as his ability to move funds across bank accounts and crypto accounts, make it easier for him to fake his death. One of the most suspicious things being him making his will just a few days before his trip to India. Lammer said:

“Gerry was really experienced with moving money across international borders, in his private jets that he could fly. We know that he frequented international casinos. All of these techniques would be useful to someone who wanted to start a new life somewhere else that had no connection to his old life.” 

Cotten’s interest in privacy coins was another notable thing in that situation. Lammer pointed out that the crypto mogul was actually a big Zcash holder at one point. Thus, it wouldn’t difficult for a man who was an early investor in crypto and an active scammer in the past to pull off such a stunt.  


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Source: https://ambcrypto.com/quadrigacx-and-missing-bitcoin-did-gerald-cotten-fake-his-own-death

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Aussie state government blockchain platform may prevent a tower block inferno

The platform will track the material resources, subcontractors and construction process used to build Aussie homes.

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Big Four accounting firm KPMG has partnered with Australian property developers Mirvac to develop a blockchain-based platform to track the provenance of buildings. 

The platform was commissioned by the New South Wales state government.

Taking inspiration from supply chain initiatives to track beef products using blockchain, the platform will allow property insurers, investors, and owners to access verified data on the resources, subcontractors and building processes employed during a property’s construction.

A working model is slated to go live within six months and will be piloted on existing buildings that are undergoing rectification amid the recent flammable cladding crisis, in addition to an upcoming development from Mirvac.

The integrity and trustworthiness of Australian property construction has emerged as a major concern after the 2017 Grenfell Tower disaster in the United Kingdom prompted a national investigation into the safety of materials used in Australian buildings during 2019.

The subsequent report estimated that it would cost roughly $4.2 billion to fix thousands of homes that are fitted with dangerously combustible cladding. As of February 2021, it was estimated that just 11 of the more than 3,400 affected buildings had been fixed.

William Payne, Mirvac’s chief digital officer, emphasized the challenge faced by consumers seeking to access certification and detailed records about the safety of the materials and processes used while building a property:

“The more insight you have into what has gone into a building and understanding not just the physical materials but also who has been involved in installing them and so on, the more confidence that all parties will have in the quality of the building.”

Related: Senator warns lack of regulations could harm Australian crypto innovation

Australia has recently emerged as a leader for blockchain provenance projects, with the federal government announcing two grants of $3 million each to blockchain teams targeting minerals certification and excise taxation solutions.

At the start of 2020, the government also unveiled its five-year National Blockchain Roadmap, citing supply chain tracking for agriculture and wine exports alongside certifying educational qualifications and identity verification for the finance industry as the three most promising use cases for DLT.

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Source: https://cointelegraph.com/news/aussie-state-government-blockchain-platform-may-prevent-a-tower-block-inferno

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The Cryptocurrency Conference Will Be Held on 13–14 August, in Shanghai

Institutions are investing in cryptocurrency to push it into the mainstream. It is well known that Bitcoin and Ethereum are currently the most famous digital cryptocurrency in the world. But in addition, Defi, NFT, and IPFS are showing the booming development trend with the appearance of cryptocurrency under blockchain technology. Cryptocurrency Conference 2021 (CCC2021) will …

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Institutions are investing in cryptocurrency to push it into the mainstream.

It is well known that Bitcoin and Ethereum are currently the most famous digital cryptocurrency in the world. But in addition, Defi, NFT, and IPFS are showing the booming development trend with the appearance of cryptocurrency under blockchain technology.

The Cryptocurrency Conference Will Be Held on 13–14 August, in Shanghai

Cryptocurrency Conference 2021 (CCC2021) will be held on 13–14 August, in Shanghai, China. The Conference is supported by Blockchain Association Singapore, India Blockchain Alliance, and China Digital Asset Center. The conference is a valuable cryptocurrency market information sharing platform between China and the world, propelling the global cryptocurrency market forward.

GETTING INTO THE MAINSTREAM” is the theme of CCC2021, and Defi, NFT, web3: Distributed storage will be the core topics for discussion.

The Cryptocurrency Conference Will Be Held on 13–14 August, in Shanghai

High Value of Speech

The appearance of cryptocurrency is under blockchain technology development. New industries will develop from irregular to standardized. The two-day conference will guide practitioners on how to avoid stepping on the red line and how investors can avoid stepping on thunder.

High Internationalization

Covering leading traditional asset management companies in more than 10 countries and regions, including China, the United States, Germany, the United Kingdom, Japan, Singapore, South Korea, Vietnam, Russia, Malaysia, etc.

Global leading Defi and NFT projects and blockchain investment institutions to join in.

Awards Ceremony

The award ceremony aims to recognize companies that have made outstanding contributions and innovative breakthroughs in the field of cryptocurrency, and setting a new model and benchmark for the development of the industry. In addition to the presence of nearly 1000 well-known experts, more than 40 international media will simultaneously report the ceremony! Bring your products and technology, your proud team, participate in the competition, gain exposure, and win the honor!

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Source: https://www.cryptonewsz.com/the-cryptocurrency-conference-will-be-held-on-13-14-august-in-shanghai/

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Bitcoin (BTC) Drops Back After Failure to Reclaim $35,000

Bitcoin (BTC) has been moving upwards since bouncing on June 22 and creating a bullish hammer. It reached a high of $34,881 the next day.

The post Bitcoin (BTC) Drops Back After Failure to Reclaim $35,000 appeared first on BeInCrypto.

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Bitcoin (BTC) has been moving upwards since rebounding on June 22. It reached a local high of $34,881 the next day.

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Whether it finds support at the current price level or gets rejected will likely determine the direction of the future trend.

BTC breaks down and bounces

Bitcoin has been moving upwards since June 22 after reaching a local low of $28,805. The bounce that followed was preceded by bullish divergences in both the RSI and the MACD signal line (blue lines). The next day, BTC reached a high of $34,881.

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However, it has been moving downwards since. While the bullish divergences have already played out, technical indicators are bearish. The MACD and RSI are both decreasing. The former is negative while the latter has fallen below 50. In addition to this, the Stochastic oscillator is very close to making a bearish cross (red circle).

The closest support and resistance levels are at $31,300 and $41,500.

BTC Trading range
BTC Chart By TradingView

Ongoing breakout

The two-hour chart shows that BTC has already broken out from a descending resistance line, which had previously been in place since June 15. 

However, it was rejected by the 0.5 Fib retracement resistance level at $35,070. 

Currently, BTC is in the process of validating the line as support (green icon). The line also coincides with the 0.382 Fib retracement support level (white)

Despite this, technical indicators do not show any bullish signs. The RSI has fallen below 50 and the MACD has given a bearish reversal signal.

BTC breakout
BTC Chart By TradingView

Bullish or bearish?

It’s not yet clear if the wave count is bullish or bearish. However, yesterday’s decrease below the $33,367 low (red line) suggests the latter. The increase from the lows looks to be a three-wave structure instead of a bullish impulse.

BTC Wave count
BTC Chart By TradingView

For that to be true, the ongoing decrease would have to be a 1-2/1-2 wave structure. Therefore, a sharp decrease would follow. 

A move above the descending resistance line and the $33,869 high would suggest that this is not the case and the count is bullish instead.

BTC movement
BTC Chart By TradingView

If BTC breaks out, it would likely mean that the current movement made up waves one and two (black) of a bullish impulse, that would complete a longer-term wave A (white).

Therefore, the movement in the next few hours is crucial in determining the direction of the trend.

Counts
BTC Chart By TradingView

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo.
In 2019, he decided to focus full-time on cryptocurrencies and trading.

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://beincrypto.com/btc-drops-after-failure-reclaim-35000/

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