[U.S. IRS Strengthens Cryptocurrency Oversight, Advances Near Real-Time Blockchain Tracking]
Since 2017, the U.S. Internal Revenue Service (IRS) has been continuously enhancing its regulation of cryptocurrencies, transitioning from targeted investigations to near real-time blockchain tracking. Tax attorney David Klasing stated that the IRS has obtained user data from multiple exchanges, including Coinbase and Kraken, through "John Doe summonses." In 2021, the IRS seized a total of $3.5 billion in cryptocurrency assets, accounting for 93% of the total assets seized that year. According to the Treasury Inspector General for Tax Administration (TIGTA) 2024 report, 75% of users identified through exchange data exhibited potential tax non-compliance. In 2023, the IRS initiated 216 audits and sent nearly 15,000 "soft letters" as reminders to users. The new 1099-DA reporting system will be implemented in 2025, requiring the reporting of disposal proceeds, with additional basis information reporting starting in 2026. Privacy advocates lost a case in the Supreme Court in July, failing to block the IRS's legal authority to obtain Coinbase data through summonses.
