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(PatriotHQ) You have nothing to worry about! The bloated IRS audit Army has promised NOT to audit unless you make over $ 400,000, unless you own one of these assets, then all bets are off!

The IRS will prioritize asset enforcement, including criminal investigations for small businesses and individuals who own digital assets, but what exactly are digital asset?

What Is a Digital Asset? (Investopedia)  Source: https://www.investopedia.com/terms/d/digital-asset-framework.asp

“A digital asset is generally anything that is created and stored digitally, is identifiable and discoverable, and has or provides value. Digital assets have become more popular and valuable as technological advances become integrated into our personal and professional lives. Data, images, video, written content, and more have long been considered digital assets with ownership rights.”  

 Here is a short list of some of the digital assets the IRS will use as a segue for your audit.

• Photos
• Documents
• Videos
• Books
• Audio/Music
• Animations
• Illustrations
• Manuscripts
• Emails, email accounts, websites
• Logos
• Metadata
• Content
• Social media accounts
• Gaming accounts
• Nonfungible tokens
• Cryptocurrency
• Tokens
• Crypto Assets
• Tokenized Assets
• Security Tokens
• Central Bank Digital Currencies

Do you own one of these digital assets, if so, you are now a target for an IRS audit even though you have earned far less than $ 400,000 per year. The IRS has proclaimed digital assets and list transactions will be scrutinized by the IRS.

The government authority committed to increase enforcement on transactions with a high risk of not obeying the tax laws.

The IRS monitors high-risk noncompliance areas such digital asset transactions, listed transactions, and overseas issues. "These problems affect a wide range of taxpayers, and data analysis shows noncompliance is more likely," the tax office noted in its newly issued spending plan.

The IRS will prioritize resources to increase enforcement activities, such as criminal investigations, when necessary.

The IRS will construct an information platform to support digital asset reporting and analytics tools to improve digital asset compliance in fiscal year 2024 (April 1, 2023–March 31, 2024).

The IRS considers digital assets property; thus, taxpayers must report taxable gains or losses from digital asset transactions.

Since it's impossible to identify digital asset owners, U.S. courts allow the IRS to employ "John Doe summons" to identify people of interest.

The IRS revealed Thursday how it will utilize of new money given to them by the Democrat Congress. $ 80,000,000,000.00 billion to modernize operations but fails to disclose how the 87,000 new armed IRS audit agents will be deployed. On top of this the existing rank and file of the standing IRS army is available for deployment on the American now.  

The IRS vowed to target their new technology and recruit more audit agents on the wealthy but refuses to answer the definition of wealthy with the exception for owning digital assets.

Putting more paper-based processes online and rapidly addressing taxpayer calls are long-desired changes. They keep trying to create a government-run computer tax system there by digitizing all tax payors!

Treasury Secretary Janet Yellen tours the IRS New Carrolton Federal Building in Lanham, Maryland, on September 15, 2022, and is delighted with their ability in how they can target and examine taxpayers by asset ownership.

Treasury Secretary Janet Yellen ordered the IRS to boost technology, customer review, and hiring after Congress passed the budget measure last summer. She wrote to the IRS to stop auditing low-income people, but digital asset ownership will nullify this exemption.

"We need to make technology investments that will improve productivity," Treasury Deputy Secretary Wally Adeyemo told reporters. The IRS's number and types of workers will fluctuate throughout time usually growing in volume.

Officials promise not to raise audit rates on small businesses and households making less than $400,000 per year, compared to historical levels, however the caveat to this narrow limitation is the digital asset ownership target.  The report claims $45.6 billion of the increased money will go after wealthy people and companies, but once again the exception will be digital asset targeting.

Given the size and complexity of these tax returns, this work often needs specialized approaches, and the IRS will make these resources available, the study stated. "We'll study wealthy people's tax returns using data and analytics."

In conclusion. The IRS audit Army will exclude taxpayers who make less than $ 400,000 per year but will bring these same people back into the audit crosshairs if the taxpayer owns a digital asset.

BTW – some of the digital asset listed for IRS audit targeting include books, photos, social media accounts, email accounts and content (whatever this is).

You don’t own any of these forbidden digital assets, do you?

Your opinion?