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Bitcoin faces the IRS scrutiny

Categories : Cash is trust, Cash protects privacy and anonymity
November 30, 2016
Tags : Fraud, Money, Money laundering, Tax evasion
After having noticed some unusal activity, America's Internal Revenue Service (IRS) is using the John Doe summons to dig deeper into the bitcoin world in its fight against tax evasion.
Communication Team / Equipo de Comunicación

In its fight against tax evasion, the Internal Revenue Service (IRS) is now directing its attention to the bitcoin market. Last week, the leading digital currency wallet and platform provider Coinbase was urged through a “John Doe summons” to disclose the names of its customers based in the US that used the platform between 2013 and 2015. This action took place following a request from the US Treasury to take new measures in the fight against tax evasion. According to the Wall Street Journal, the agency already identified two societies that conducted financial transactions in bitcoins to distort their tax declarations by passing them off as technology spending.

Bitcoin is suspected to be used as a new tax evasion method by US authorities as it can be purchased almost anonymously and stocked virtually, working under the same principle as undeclared gold bullions stored in a bank safe but without the drawback of needing a storage location. Nevertheless, bitcoin do not guarantee full anonymity as digital currency providers are required to perform Know Your Customer (KYC) procedures and transactions can be traced at any time.
Today, the total value of bitcoins in circulation amounts to approximately USD $10 billion, representing a small market that is however expected to grow quickly as virtual currencies become more popular. 
To read the original article [in French only], click here.