Victor Jaramillo Comments on Cryptocurrency Crackdown in Bloomberg Law

The federal government is racking up wins in cases tied to unreported foreign bank accounts after years of working to track them down, establishing a legal framework that is expected to help the pursuit of cryptocurrency held abroad.

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Continued government success in these types of cases could bring millions more into federal coffers while creating a blueprint for going after foreign-held cryptocurrency. In fact, a financial crimes enforcer within the Treasury Department, FinCEN, has said it plans to propose applying FBAR reporting requirements to foreign accounts holding virtual currency.

If that happens and the IRS makes corresponding changes on tax forms, then “all of this body of case law that’s very government-friendly applies to cryptocurrencies,” said Victor Jaramillo, a Member at Caplin & Drysdale in Washington who serves on an American Bar Association subcommittee focused on civil and criminal tax penalties.

For the full article, please visit Bloomberg Law’s website (subscription required).