IRS to Build Tax Evasion Cases

The U.S. Internal Revenue Service has begun preparations to bring down the hammer on Bitcoin tax cheats  
09 February 2018   446

US residents have two more months to submit their annual federal tax returns. The Internal Revenue Service will treat very harshly Bitcoin tax cheats.

The agency has assigned a team of elite criminal agents to investigate whether Bitcoin and other cryptocurrencies are being used to cheat the taxman.

According to IRS chief Don Fort, it’s possible to use Bitcoin and other cryptocurrencies in the same way as foreign bank accounts to facilitate tax evasion. He also informed that the agency hasn’t charged anyone yet, but the cases will come. Under current US law, cryptocurrency owners are required to pay taxes on profits realized from any cryptocurrency transaction. It is clear that if you have realized profits from cryptocurrency investments, you will have to pay taxes.

This new technology is a big challenge for the IRS, they need to educate themselves on what is a blockchain. The agency lost its key staffers since 2011 on account of budget cuts. This team will help the agency to return its full strength, complete with its own crew of blockchain experts.

There are three so-called types of bitcoiner: 1) those intending to pay, 2) those hoping the IRS will not hunt them, because there are bigger “fish to fry”, 3) those willing not to pay. They even ready for moving to Puerto Rico. Of course, days of wide-scale cryptocurrency tax avoidance are almost in the past.

Miners Arrested in 2 Chinese Cities For Power Theft

Six people were detained in Tianjin and two in Wuhan
25 April 2018   58

Bitcoin miners were arrested in two Chinese cities on charges of stealing electricity. This is reported by CoinDesk.

In the first case, 6 people were detained in Tianjin. The suspects used 600 devices for mining bitcoins that were connected to a local substation. The police claim that the connection was made bypassing the counters.

The investigation was initiated after one of the electric power companies discovered a discrepancy between the actual and claimed consumption of electricity.

The police seized all equipment for mining, as well as 8 powerful fans.

Events are taking place while China continues to play a dominant role in the mining of bitcoin, despite the pressure on the cryptocurrencies. As Xinhua notes, this case of electricity theft turned out to be the largest in recent years.

According to another report, which appeared today on the website of the Supreme Prosecutor of China, two more suspects were detained in Wuhan. They also stole electricity.

The detainees used empty stores since March 2017 to house miners and did not pay for electricity, as did the defendants from Tianjin.