IRS division failed to meet standards for seizing crypto, says watchdog
Based on an evaluation between December 2023 and January 2025, the IRS Criminal Investigation did not always follow guidelines around seizing and holding crypto in cases.
A US government watchdog has recommended reforms to the Internal Revenue Service (IRS) criminal investigation division’s handling of digital assets, citing repeated failures to follow established protocols.
In a Tuesday report, the US Treasury Inspector General for Tax Administration said its evaluation of the IRS Criminal Investigation (IRS-CI) revealed shortcomings around the seizure and safeguarding of digital assets.
According to the government watchdog, the IRS failed to follow all guidelines between December 2023 and January 2025 for seizure memorandums around confiscated crypto, detailing the addresses, dates, and amounts.
