A tax expert says IRS crypto audits are increasingly focused on complete asset tracing, foreign account disclosures, and anti-money laundering concerns rather than minor differences in gain calculations alone.

A crypto tax specialist says IRS audits increasingly focus on complete fund flows, account disclosure, and anti-money laundering concerns, with FBAR exposure posing added risk for users of foreign exchanges.

The IRS has revised the virtual currency question on the 2021 Form 1040 draft. The new question removes 'send' and 'acquire', adding 'disposed of' — narrowing the scope to taxable events. Experts say this reduces confusion for non-taxable transfers while signaling more targeted enforcement.