The taxman cometh – and this year, the IRS has its sights set on cryptocurrency. Guy Ficco, the head of the Internal Revenue Service's Criminal Investigation unit, is warning taxpayers to tread carefully as the agency anticipates a surge in crypto-related tax evasion cases.

Gone are the days when crypto transactions flew under the radar. Ficco, speaking at a recent Chainalysis Links event, acknowledged that crypto has been on the IRS's radar for a while, often entangled in larger fraud investigations. However, the landscape is shifting.

"We're seeing more pure crypto tax crimes now," Ficco stated, referring to violations of federal income tax laws specifically involving crypto. This could range from simply failing to report income generated from crypto sales to deliberately obscuring the true cost basis of crypto holdings.

Ficco predicts a significant rise in these "Title 26 crypto cases" in the coming year, and the IRS is pulling out all the stops to be prepared.

One key weapon in their arsenal? Collaboration with tech firms like Chainalysis. This partnership equips the IRS with sophisticated tools to dissect the complexities of crypto transactions. Opacity, once a veil shielding crypto ownership, is being lifted as the IRS leverages these tools to trace financial flows and uncover crucial details for investigations.

The message is clear: the IRS is no stranger to the world of cryptocurrency, and they're actively wielding the power of technology to track down tax evaders. This year, taxpayers involved in crypto transactions would be wise to ensure their filings are squeaky clean – or risk facing the consequences.