IRS Commissioner Concerned NFTs May Be Used for Tax Evasion

[bbc.reporter]

He should not only be concerned, I reckon he should be ready because it will certainly be used for tax evasion hehehe. This will be similar to how the billionaires use art collection for tax evason. The whole art trading industry’s foundation is supported by moneylaundering and tax evasion.



Speaking at the Senate Finance Committee on Tuesday, IRS Commissioner Charles Rettig raised concerns about the role of non-fungible tokens (NFTs) in tax evasion.

Rettig told the Senate Finance Committee that the US fails to collect as much as $1 trillion in taxes owed each year, partly due to the explosion in cryptocurrencies, which the agency finds difficult to trace and tax.

Read in full https://decrypt.co/66589/irs-commissioner-concerned-nfts-may-be-used-for-tax-evasion



Also,  read this article about the art world and tax evasion.

https://observer.com/2020/03/art-collectors-avoid-state-tax-through-shipping/

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[DapanasFruit]

What IRS should do is to give more focus on how they can acquire modern and effective technologies to be able to track tax violators. While cryptocurrency including the explosion of both DeFi and NFT can be new grounds of opportunities for many people and of course for the government to make more money with tax revenues, the government is seeing some difficulties with the new technologies being applied here. They should focus on research and development improving their tracking capabilities - this is the only way they can cope up and be abreast at least with these new realities already developing in the marketplace. And they should talk with this industry so that a partnership can be ironed out instead of "killing" each other which can result into a loss-loss situation.

[bbc.reporter]

@DapanasFruit. Technology is developing faster than the government can develop their own technologies to win this cat and mouse game. Also, I am very skeptical if the government thinks that it is a game that they can win. The government might only be trying to look good to continue on with their scam.