Blockchain technology and cryptocurrencies are natural partners, with decentralized control mechanisms and distributed models that emphasize secrecy as much as they offer privacy or security.
For the IRS, secrecy is a problem. More precisely, it’s a missed revenue opportunity. In an effort to collect tax on the booming crypto trade, the agency has already shown a willingness to enforce taxation of crypto trading platforms. How exactly the IRS will do that, however, remains a question only the agency itself can answer. And it hasn’t — yet. [Read on for more from Sovos General Manager Paul Banker in CPA Practice Advisor.]