The US Internal Revenue Service (IRS) has partnered with tax law enforcement agencies in Australia, Canada, the Netherlands and the United Kingdom to launch an international working group to deal with cryptocurrency crimes. The new alliance, known as the “Global Tax Law Enforcement Joint Conference” or “J5”, will cooperate in intelligence and criminal investigations. In response to cross-border tax crimes and money laundering issues, “reducing the cryptocurrency and cybercrime constitutes an increasingly serious Threat.”
According to a press release issued on Monday, July 2, the US Internal Revenue Service (IRS) has partnered with tax law enforcement agencies in four other countries to launch an international working group to deal with cryptocurrency crimes.
The new alliance is known as the Global Tax Law Enforcement Association or J5, which includes tax law enforcement agencies from five countries – Australia, Canada, the Netherlands and the United Kingdom, and the United States.
As part of J5, these agencies will collaborate on intelligence and criminal investigations to “reduce the growing threat posed by cryptocurrencies and cybercrime to tax administration” for cross-border tax crimes and money laundering.
According to the US Internal Revenue Service, the decision to form a multinational panel through J5 is in response to the efforts of the Intergovernmental Organization for Economic Co-operation and Development (OECD) to call on countries to take action to strengthen the fight against tax crimes.
The National Tax Agency – Criminal Investigation Bureau (IRS-CI) is a member of J5. Don Fort, the head of the agency, told Forbes that the agency will work with the US Internal Revenue Service to “compress global criminal groups in a variety of ways.”
In February of this year, IRS-CI formed a team of 10 new investigators to strengthen the tracking of people who use cryptocurrencies to evade taxes.
In addition to the federal property tax on cryptocurrencies, the IRS also participates in joint operations with criminal cases related to cryptocurrencies with the US Department of Justice (DOJ) and the Federal Bureau of Investigation, including this spring’s listing of Backpage.com. indictment. The site was accused of engaging in $500 million in illegal money laundering, in part through cryptocurrency.
As Cointelegraph reported in 2017, in order to overcome the difficulty of tracking anonymous encrypted transactions, the IRS has long used third-party blockchain intelligence tools (such as Chainalysis) to track cryptocrime.