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The U.S. Internal Revenue Service (IRS) could seize people’s crypto assets to settle unpaid taxes, an agency official said.
Robert Wearing, deputy associate chief counsel at the IRS, told a virtual conference Wednesday that crypto can be seized in the event of failure to pay taxes, just like other property.
This is in line with a 2014 IRS notice that crypto will be treated as property, not currency, for tax purposes.
“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,” Wearing said, according to a Bloomberg report.
The IRS recently contracted with crypto tax service provider TaxBit to assist with auditing of crypto transactions to verify the correct reporting of taxes by high-volume traders.