IRS Division Failed To Meet Standards For Seizing Crypto — Watchdog Group
The US Treasury Inspector General for Tax Administration recommended reforms for the IRS Criminal Investigation division regarding digital assets due to failures in following protocols. An evaluation revealed issues with the seizure and safeguarding of digital assets between December 2023 and January 2025. The IRS did not adhere to guidelines for seizure memorandums, which should detail addresses, dates, and amounts of confiscated crypto. Agreed recommendations include ensuring IRS-CI personnel understand seizure memorandum requirements, establishing an inventory system for managing seized digital assets, and updating internal guidelines for preparing seizure memorandums. The US government holds an estimated 200,000 BTC, valued over $21 billion, primarily from significant seizures linked to criminal cases.
