Guy Ficco, head of criminal investigations at the IRS, informed CNBC on April 12 that taxpayers are increasingly involved in tax crimes related to cryptocurrency. Ficco noted a rise in "pure crypto tax crimes" falling under Title 26 of the US Code, which covers federal income tax violations.

These crimes typically involve failing to report income from cryptocurrency sales and concealing one's actual basis in cryptocurrency. Ficco anticipates that the issue will persist, with an increase in tax-reporting crimes leading to more charges from the IRS in the coming years. While IRS investigations into cryptocurrency have historically been part of broader inquiries into scams and embezzlement, Ficco acknowledged the growing prevalence of cryptocurrency in various types of crimes, such as phone and romance scams.

Despite this, he emphasized that crypto scams are distinct from tax-reporting crimes. Ficco's remarks coincide with a recent IRS reminder for individuals to report taxes on cryptocurrency transactions. Enforcement efforts around cryptocurrency taxes are expected to intensify, with the IRS hiring specialists in this area and professionals preparing for increased scrutiny.

Ficco's predecessor, Jim Lee, also highlighted a heightened focus on tax issues in December 2023, with half of active crypto investigations at that time involving tax matters.