<strong>IRS Regulators Investigate Bitcoin ATMs and Kiosks</strong>

Criminal Investigation Cheif at <a href="https://www.irs.gov/">International Revenue Service</a> (IRS), John Fort made a statement. He said that the criminal investigator is investigating tax concerns resulted due to <a href="https://www.cryptoknowmics.com/crypto/bitcoin-atms-worldwide-reach-surpass-6000-milestone/">Bitcoin ATMs</a> and Kiosks.

As per the Bloomberg Law on Nov 15, Fort said that IRS is making collaboration with law enforcement. This collaboration is to look into illegal uses of new emerging technology such as cryptocurrencies. He stated:
<blockquote>“We’re looking at those, and the ones that may or may not be connected to bank accounts [...] In other words, if you can walk in, put cash in and get bitcoin out, obviously we’re interested potentially in the person using the kiosk and what the source of the funds is, but also in the operators of the kiosks.”</blockquote>
There are 4, 129 Bitcoin ATMs in the United States as per the Coin ATM Radar. And they allow users to transact cryptocurrencies in exchange for a free. As per the Bloomberg, every major U.S city has one of such machines. Fort further detailed that such services are needed to conform to Know Your Customer rules:
<blockquote>“<em>They’re required to abide by the same know-your-customer, anti-money laundering regulations, and we believe some have varying levels of adherence to those regulations.”</em></blockquote>
Reportedly, Bitcoin ATM company, Bitstop set up one of its machines at the Miami International Airport one month ago.
<h3>Tax Status Stays Murky</h3>
Regarding taxation, Fort stated that crypto tax concerns are a big threat. He added that the cryptocurrency Industry is inherently suspicious for its transparency and visibility. And these lacks uplift its potential for non-compliance. Yet, he confesses no cades have been submitted so far:
"We haven’t had any public cases filed, but we do have open cases in inventory.”

At the beginning of the week, IRS Office of the Associates Cheif Counsel's attorney, Suzanne Sinno, comprehended that cryptocurrencies have never been entitled to like-kind tax exemption, even prior to the 2017 tax overhaul.

In the U.S, a like-kind exchange is an asset transaction. And this does not produce tax liability from the sale of an asset when it was sold to buy a substitute asset.

While crypto traders were well informed that post-overhaul transactions do not meet the requirements for such an exemption, transaction entitlement before that span had been murky.

IRS Regulators Investigate Bitcoin ATMs and Kiosks

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