According to an official from the IRS, taxpayers are committing more tax crimes related to cryptocurrency. The agency has noticed an uptick in "pure crypto tax crimes" which involve failing to report income from crypto sales and concealing one's basis in crypto assets.

It is expected that these tax crimes involving cryptocurrency will continue to rise. The IRS is seeing more reporting failures and is preparing to press more charges in the upcoming year and beyond. In the past, IRS investigations into crypto crimes were mostly part of larger investigations related to scams and theft.

The IRS has reminded individuals that they must report taxes on crypto transactions such as selling crypto or receiving it as payment. Despite having tax reporting rules for crypto investors since 2014, many still fail to comply. A recent report found that only a small percentage of US investors have paid taxes on their crypto assets as required.

The IRS has also increased enforcement efforts regarding cryptocurrency. They recently hired two experts in February to focus on crypto-related issues, indicating a strong crackdown in the future. The agency's previous focus on tax issues involving crypto was highlighted by their former chief in 2023.