According to a press release published on July 2, the US Internal Revenue Service (IRS) together with tax enforcement authorities as launched an international taskforce together with four other countries to take on cryptocurrency-enabled crimes.
The five countries that joined this alliance are Australia, Canada, the Netherlands, and the United Kingdom alongside the United States. The new coalition, dubbed ‘The Joint Chiefs of Global Tax Enforcement,’ or ‘J5’ comprises tax enforcement agencies.
As part of this enforcement, their goal is to reduce the growing threat to tax administrations caused by cryptocurrencies and cybercrime, as well as to target transnational tax crime and money laundering.
This initiative was in response to the intergovernmental Organization for Economic Co-operation and Development (OECD)’s call for an action to be made against the enablers of tax crime.
The chief of the Internal Revenue Service-Criminal Investigation (IRS-CI), Don Fort will work alongside IRS as part of the newly launched J5 told Forbes that their efforts “can pressurize the global criminal community in ways we could not achieve on our own.”
The IRS-CI assigned 10 new investigators to tighten the hunt against people who use crypto to evade taxes. As well as exposing cryptocurrencies to federal property taxes, the IRS will also work with the US Department of Justice and the FBI regarding crypto-related crimes.
Cointelegraph reported in 2017, for these crypto crimes to be put into a stop, the IRS is harnessing third party blockchain intelligence tools such as Chinalysis.