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US officials seize cryptocurrency accounts tied to al-Qaeda and ISIS
Agents recouped about $2 million worth of virtual currency in total.
The IRS won't ask you to report 'Fortnite' V-Bucks on tax returns
Don't worry, you won't have to factor in-game currency into your taxes... at least, not yet. The IRS has removed a guideline (cached here) from October that treated Fortnite's V-Bucks, Roblox's Robux and other in-game currencies with real monetary value as "convertible" currency that could be subject to federal taxes. In a follow-up, IRS Chief Counsel Michael Desmond confirmed to CNN Business that including in-game money was an error. The updated section now focuses on cryptocurrencies like Bitcoin and Ethereum, so you can likely rest easy if you received a V-Bucks gift card last year.
Tax prep companies can’t hide their free filing software from Google anymore
This week, the Internal Revenue Service (IRS) announced changes that will hopefully make it less stressful for a lot of Americans to file their taxes in 2020. In an addendum to the almost 20-year-old Free File agreement, the agency has put new protections in place to make it easier for Americans to file their taxes for free.
IRS reminds 10,000 taxpayers that cryptocurrency is subject to taxes
By the end of August, an estimated 10,000 taxpayers will receive letters from the IRS warning them that they may owe back taxes on unreported cryptocurrency earnings. While it might not be immediately obvious, you must include cryptocurrency earnings when you file federal taxes. As with tax evasion for traditional currency, anyone convicted of evading crypto taxes could face up to five years in prison and a fine of up to $250,000.
IRS' direct online payment system goes down on tax day (update: resolved)
We hope you weren't relying too heavily on internet payments to file your taxes on time. The Internal Revenue Service's Direct Pay system failed (and is still unavailable as we write this) on April 17th -- you know, the last day before the tax filing deadline. You can still pay online with a credit or debit card, but that entails a transaction fee. Otherwise, you're looking at old-school checks.
Coinbase must share users' cryptocurrency data with the IRS
Coinbase will be forced to share the financial information of 14,355 users with the Internal Revenue Service (IRS), following a California federal court ruling. The move follows a year-long battle between the cryptocurrency company and the IRS, which believes a high number of customers are failing to report holdings on their taxes. Coinbase has some six million users, but fewer than 1,000 have officially declared cryptocurrency activity.
Federal employees stole data from Homeland Security
Three employees of the inspector general's office for the Department of Homeland Security (DHS) are accused of stealing a computer system that contained around 246,000 employees' personal data. That information included names, social security numbers and dates of birth, USA Today reports, and one of the suspects is also said to have had in their possession around 159,000 agency case files. The data breach was reported to DHS officials in May and acting DHS Secretary Elaine Duke decided in August to notify the employees whose information was included in the stolen data.
Judge rules NYPD needed a warrant before using cell-site simulator
A Brooklyn judge has ruled that because the New York Police Department (NYPD) used a cell-site simulator, also known by the brand name Stingray, to track down a murder suspect without a warrant, some evidence against the suspect will be thrown out. As the New York Times reports, the NYPD initially denied using such a device in this case, but later conceded that it had. Following the suspect's arrest, he was picked out of a lineup by another victim, and that's what is being tossed out.
IRS freezes its fraud prevention contract with Equifax
The IRS got a lot of flak from both ordinary citizens and lawmakers when it awarded Equifax a fraud prevention contract earlier this month. After all, they forged their partnership after the credit reporting agency revealed that it recently suffered a massive security breach that affected 145 million Americans. Now, after reports came out that an adware installer lived in the agency's website, IRS has decided to temporarily suspend the $7.2 million, no-bid contract.
IRS hands fraud prevention contract to Equifax despite massive hack
You'd think that government agencies would be reticent to work with Equifax given that it just exposed the private info of more than 145 million people through a preventable hack, but a massive data breach apparently isn't enough of a deterrent. The Internal Revenue Service recently awarded Equifax a fraud prevention contract that will have it verifying taxpayer identities. And crucially, it was a no-bid, "sole source" contract -- Equifax was deemed the only company capable of fulfilling demand.
Court rules Stingray use without a warrant violates Fourth Amendment
Today, the Washington DC Court of Appeals overturned a Superior Court conviction of a man who was located by police using a cell-site simulator, or Stingray, CBS News reports. The court ruled that the defendant's Fourth Amendment rights were violated when law enforcement tracked down the suspect using his own cell phone without a warrant.
IRS warns that tax-related phishing scams are on the rise
According to the IRS, the amount of phishing scams targeting W-2 forms rose sharply this year compared to last. In 2016, around 50 companies and organizations fell victim to such scams while during this year's tax season, that number increased to around 200. They were aimed at businesses, public schools, universities and nonprofits among others and several hundred thousand employees' data were stolen.
IRS says thousands of taxpayers affected by financial aid breach
Tax day is rapidly approaching in the US, but according to the IRS, there could be additional headaches for up to 100,000 people this year. Hackers posing as students applying for financial aid possibly swiped taxpayer details through the FAFSA (Free Application for Federal Student Aid) online tool. According to The New York Times, the breach has the potential of being the most extensive since the 2015 tax return incident when info on over 300,000 taxpayers was used to file false claims. The IRS later increased that estimate to potentially affect 700,000 people.
Facebook says it shouldn't pay back taxes from Irish loophole
Apple and Google aren't the only big tech companies fighting against requests to pay back taxes they allegedly racked up through loopholes. Filings obtained by Ars Technica show that Facebook is resisting the IRS' request for taxes owed after the social network reportedly undervalued property transferred to its Irish holding company. If you ask the US agency, Facebook owes $1.7 million plus interest for at least 2010. That doesn't sound like much for such a profitable company, but Facebook claims that it could wind up paying $3 billion to $5 billion (before interest and penalties) if the IRS really does want money from the past several years.
IRS sues Facebook to expose its creative accounting methods
The IRS filed suit in a San Francisco court Wednesday against Facebook to get information about the tech titan's tax arrangement in Ireland. Specifically, the agency wants documents detailing whether the social giant sold rights to its Irish subsidiaries cheaply in order to avoid paying the US' comparatively higher taxes.
IRS kills e-filing PINs prematurely due to cyberattacks
The IRS was gearing up to kill e-file PINs later this year, but it has decided to speed up its plans after discovering suspicious activity. These electronic filing personal identification numbers, which people could use to authenticate tax returns filed online, are no longer available on IRS.gov or via the agency's toll-free phone number. If you'll recall, identity thieves used malware to steal taxpayers' info from other websites, which was then used to generate 100,000 PINs, back in February. The thieves were actually gunning for 464,000 PINs, but the agency was able to stop them before they got near that number.
Last year's IRS cyber attack may have accessed 700,000 accounts
The Internal Revenue Service already increased the total number of accounts accessed in last year's cyber attack once. Today, it's raising the number gain. The IRS announced that during a 9-month review of the incident, it discovered that an additional 390,000 taxpayer accounts were potentially accessed during the breach. Those accounts are in addition to the confirmed access of and initial 114,000 last May and the subsequent 220,000 that were added in August. For those keeping track at home, today's announcement brings the total to over 700,000 affected tax payers.
IRS says identity thieves nabbed 100,000 income tax e-file PINs
Tax season is a busy time for the Internal Revenue Service, and identity thieves are only making it worse. The IRS confirmed that hackers used stolen social security numbers automated malware to generate over 100,000 e-file (electronic filing) PINs before the department but the clamps on the attack last week. Thieves were actually after 464,000 of the numbers, but were stopped about a quarter of the way through.
IRS expects its e-file tax system to be back online today
If you're desperate to get tax refund cash via the IRS's e-file system, a server crash may delay it, though not by much. The agency said that it's "stll assessing the scope of the outage," but thinks any disruptions will be minimual, adding, "we continue to expect that 9 out of 10 taxpayers will receive their refunds within 21 days." This year, the IRS launched a new version of the Free File system aimed at consumers that earned $62,000 or less, a jump of $2,000 over last year.
The Silk Road bust almost didn't happen
Officials like to boast about taking down Silk Road creator Ross Ulbricht (aka Dread Pirate Roberts), but it turns out that they almost didn't get him at all. The New York Times has learned that the Internal Revenue Service's Greg Alford spent months sifting through chat logs and other details to link Ulbricht to the online black market, but the DEA and FBI didn't take the tax investigator's work seriously. If it weren't for his insistence on pursuing the case and reviewing evidence, Ulbricht might still be running the Dark Web service today.
