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IRS Says It Can Seize Your Crypto If You Have Tax Debts

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Wed, 05/12/2021 - 17:47
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Alex Dovbnya
The IRS can seize digital assets to satisfy delinquent tax debt
IRS Says It Can Seize Your Crypto If You Have Tax Debts
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According to Robert Wearing, deputy associate chief counsel for the Internal Revenue Service, the holdings of cryptocurrency owners who have unpaid tax debts can be seized, Bloomberg reports.  

At a virtual event held by the American Bar Association's section of taxation, Wearing explained that digital assets are treated as property, which is why they can be confiscated like one’s real estate or car for satisfying delinquent tax debt:   

Bottom line: The IRS will seize that property and will attempt to follow its usual procedures to sell it and use it to satisfy collection.

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EU Country to Reduce Cryptocurrency Tax by 50 Percent to Attract "Billions" to Its Budget

As reported by U.Today, the IRS recently scored another court victory, which allowed it to obtain access to Kraken’s user data.

The agency is also hiring a hacker who can develop a tool for cracking crypto wallets.   

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.