With tax season just a few months away, which means the season for creative forms of tax evasion is soon to begin.
Sadly, for those with dreams of using bitcoin to cheat the tax man next year, there is some bad news. The Internal Revenue Service is actively on the lookout for bitcoin-based for tax evasion.
According to documents filed last week, the tax agency is fiercely going after both tax evaders big and small – who are using bitcoin based transactions in an attempt to hide funds from the internal revenue service, by simple not reporting them. The tax agency sent a broad request on Thursday to Coinbase, the largest Bitcoin exchange in the United States, asking for the records of all customers who bought virtual currency from the company from 2013 to 2015.
That request came in the form of a “John Doe summons,” – and indicated that the IRS had