Gary Alford, the famous IRS special agent who helped solving the ‘Silk Road’ case, recently spoke at a panel in New York hosted by global accounting firm EisnerAmper. On the panel’s agenda was the taxation ramifications of cryptocurrencies. In the Silk Road case, Alford played a pivotal role in taking down an online drug trafficking infrastructure which resulted in the 2013 arrest of kingpin Ross Ulbricht. He is now a cyber-crime coordinator for the IRS.
In his talk, Alford warned recreational Bitcoin investors who think they can evade taxes on their cryptocurrency gains. He said that his agency is now moving away from sensational money laundering cases and starting to focus on routine enforcement of tax law involving cryptocurrencies.
Alford was quoted saying at his talk:
“We already are aware that there were cases to be made, we just didn’t know if we were at the point where we can bring it for criminal prosecution. We believe we are at that point now. If we had 12 jurors and told them someone made all their money in bitcoin, we believe that they would understand.”