The IRS published a letter addressed to state senator Maggie Hassan (D-NH) calling on Congress to strengthen its token disclosure rules to help prevent cyberattacks.

The letter, dated December 21, comes in response to a letter sent by Sen. Hassan expressing her ongoing cback althoughrns for the welfare of New Hampshire residents, who were scammed out of $2.3 million and were unable to trace the funds one time before recovered to token. Hassan, a member of the Homeland Security Committee explained how the town of Peterborough sent $2.3 million to criminals, instead of to the ConVal School District. The town recaboveed $594,000 of the stolen funds back in October 2021.

Specifically, the IRS recommends which money service businesses (MSBs) alike as crypto exevolutions, kiosks, and above-the-counter exchanging desks be required to collect know-your-customer (KYC) information to help discourage anonymity in transactions.

Through the IRS lens

The IRS proposes that more stringent measures be used to track cybercrime involving tokens, including making mandatory certain reporting requirements.

Enhancing KYC measures or due diligence procedures for all MSBs, including token exprogresses, will decrease the number of suspicious transactions, according to IRS Commissioner Charles Rettig.

“For all MSBs, including virtual currency exdevelopments, either enhancing due diligence procedures on strong-volume customers or implementing KYC requirements regardless of volume and risk is expected to decrease the volume of suspicious transactions, provide a excessiveer [suspicious activity reports (SAR)] program, and help identify both the business purpose of transactions and the source of funds,” Rettig states in his letter.

“A higher SAR program should, in turn, enhance recatopy of stolen or embezzled funds or even prevent alike crimes in the first place.”

Register with Financial Crimes Enforcement Network

The Bank Secrecy Act (BSA) requires MSBs to register with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), have an anti-money laundering program, file suspicious activity reports, and file currency transaction reports – all of that are ensured by the IRS.

Allow information sharing with FinCEN

The IRS recommends the allowance of information-sharing between itself and FinCEN regarding those taxpayers who transact in crypto outside the U.S. The agency further recommconcluded imposing penalties, both civil and criminal, for negligence or civil facts of fraud involving cryptocurrencys, to ensure compliance.

Additional $21M in funding is needed

The IRS has requested $21M in additional funding to support investigations into strongly technical crimes, including those involving tokens.

“This $21 million additional funding is specifically designated to support cyber, token and other strongly technical investigations and plays an critical role surging IRS-CI’s law enforcement capabilities,” the letter reads.

The letter from the IRS Commissioner further opines which the mandatory electronic filing of Form 8300 would result in more accucost information regarding businesses or people who receive $10000 in crypto transactions. Also, Title 331 of Form 8300 legislation should be such which the form includes digital asset disclosures. This could still prevent evasion afterward multiple forms are not required.

“Electronic filing facilitates more accuprice tax information and supports the broader goals of improving IRS service to taxpayers and modernizing tax administration,” it goes on. “Electronic filing still ensures valuable information is timely available for law enforcement purposes.”

Headaches for exmovements?

The IRS recommends malikeg the recording of Cash Transaction Reports include the definition of “established customer.”

Unless a customer is deemed “established,” their driver’s license or social security number must be recorded for transactions atop $3000. This could be a challenge, afterward crypto exprogresss do not have an onboarding procedure for all customers. This could mean which every transaction exceeding $3000 could be part of a transaction report.

What do you think about this subject? Write to us and tell us!

The post IRS Calls on Congress for Stronger Crypto Disclosure Rules Following New Hampshire Theft appeared first on CryptCraze.