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Author: Admin | 2025-04-28
Wondering if your Bitcoin transactions are traceable by the IRS and whether the IRS can track crypto? You've come to the right place. In this guide, we're looking at whether cryptocurrencies can be tracked by the IRS, how the IRS tracks crypto, which crypto exchanges report to the IRS, which crypto exchanges don't report to the IRS, and more.Yes, Bitcoin is traceable. Here's what you need to know:Blockchain transactions are recorded on a public, distributed ledger.This makes all transactions open to the public - and any interested government agency.Centralized crypto exchanges share customer data - including wallet addresses and personal data - with the IRS and other agencies.The IRS has dedicated agents trained to connect wallet addresses to users.Under new regulations, soon both centralized and decentralized exchanges operating in the US will be required to issue 1099-DA to the IRS detailing users' transactions.Watch: Can the IRS track crypto?For many investors, the appeal of crypto comes down to anonymity. After all, cryptocurrencies are often touted as decentralized, anonymous, untraceable, and tamper-proof assets. But it's not quite that simple in reality.Bitcoin and other cryptocurrencies are built using blockchain technology. One of the key tenets of blockchain technology is transparency - which is upheld by the public digital ledger. Anyone can access these ledgers and view any transaction on that blockchain. Moreover, all transactions are permanently stored on the ledger.So, any interested party can use a transaction ID and a blockchain explorer to find corresponding wallet addresses - or vice versa to see
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