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IRS Will Seize Crypto Assets on Failure to Pay US Taxes: Official
Crypto is treated by the IRS as property for U.S. tax purposes and can be seized in the same way, an official said.
Updated Sep 14, 2021, 12:54 p.m. Published May 13, 2021, 11:00 a.m.
The U.S. Internal Revenue Service (IRS) could seize people’s crypto assets to settle unpaid taxes, an agency official said.
STORY CONTINUES BELOW
- Robert Wearing, deputy associate chief counsel at the IRS, told a virtual conference Wednesday that crypto can be seized in the event of failure to pay taxes, just like other property.
- This is in line with a 2014 IRS notice that crypto will be treated as property, not currency, for tax purposes.
- “Bottom line: The IRS will seize that property and will attempt to follow its usual procedures to sell it and use it to satisfy collection,” Wearing said, according to a Bloomberg report.
- The IRS recently contracted with crypto tax service provider TaxBit to assist with auditing of crypto transactions to verify the correct reporting of taxes by high-volume traders.
See also: How to File Your Crypto Taxes (and Not Get Screwed)
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