Bitcoin Users Beware - The IRS May Know Your Identity

The Internal Revenue Service (IRS) has just obtained specialized software for identifying users of bitcoins and other virtual currency. According to a work contract obtained through a Freedom of Information Act request by The Daily Beast, the IRS hopes to use this software "to identify and obtain evidence on individuals using bitcoin to either laundry money or conceal income as part of tax fraud or other Federal crimes."

The IRS Criminal Investigation team has taken a significant interest recently in virtual currency transactions. In May 2017, it was recognized by the Financial Crimes Enforcement Network (FinCEN) for its role in the arrest and indictment of individuals involved in narcotics sales and money laundering based on bitcoin use.

A copy of the new IRS work contract can be viewed here.

To read the original article about the software acquisition, click here.

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