The US Internal Revenue Service finally started on the Bitcoin ATM machine.
John Fort, head of the US Internal Revenue Service (IRS) criminal investigation, said the regulator is investigating possible tax issues with Bitcoin ATMs and self-service terminals.
According to a report by Bloomberg on November 15, Fort said the IRS is working with law enforcement to investigate the illegal use of new technologies such as cryptocurrency and said:
“We are researching accounts that may be related to bank accounts or may not be related to bank accounts… In other words, as long as you can invest in cash and get bitcoin (which is our survey), it is obvious that we are interested. It may be the person who uses the Bitcoin self-service terminal, as well as the source of the funds, and the operator of the Bitcoin self-service terminal."
US Internal Revenue Service investigates bitcoin ATM machine
According to Coin ATM Radar, there are 4,129 Bitcoin ATMs and ATMs in the United States, and users can purchase and sell cryptocurrencies by paying a fee. Bloomberg said that every major city in the United States has one such machine. Fort explained that these services must comply with the KYC rules:
“They must comply with the same level of KYC (know your customer) and AML (anti-money laundering) regulations, and we believe that these regulations are not fully implemented in such services.”
Fort explained that the issue of cryptocurrency taxation is an emerging risk factor, adding that the inherent lack of transparency in the cryptocurrency field raises the possibility of non-compliance. Despite this, he admits that there have been no related cases so far, he said, "We have not filed any public incidents, but there are indeed public cases in our dossier."
Earlier this week, Suzanne Sinno, a lawyer at the IRS's Office of the Chief Legal Counsel, said that even before the 2017 tax reform, cryptocurrencies were never eligible for tax exemption for similar assets.
In the United States, a similar asset transaction is an asset transaction that does not generate tax liability for selling assets to obtain replacement assets.
Although cryptocurrency traders mostly know that the reformed transaction does not meet such an exemption, prior to this, trading qualifications have been vague.
When the tax is paid, the IRS will refund the tax.
IRS has begun to provide tax rebates to some cryptocurrency users who comply with tax rules. Those who submitted the transaction certificate in accordance with the regulations received a tax refund.
According to CoinTracker co-founder Chandan Lodha, this proves that the IRS does not punish the intent of cryptocurrency users. The agency even informed an investor that he owed a tax of $3.9, and after he paid the tax, the agency refunded his taxes in full.
CoinTracker has partnered with hundreds of cryptocurrency holders to help them respond to tax letters from IRS. However, they did not disclose how much tax the IRS has refunded. What we know is that the IRS sent about 10,000 letters asking cryptocurrency users to fulfill their tax obligations.