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.
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.