On Sept. 8, the IRS’s criminal investigation department signed a $249,900 contract with a blockchain analytics firm to expand its crypto tracing tools. 

The contract provides limited information, but it follows an overarching trend of the IRS stepping up its game when it comes to crypto. 

The firm behind the contract, Blockchain Analytics and Tax Software, is a relative unknown compared to familiar faces in analytics like Chainalysis. The firm’s only prior government contract was for only $9,800 with the U.S. Treasury for serving as an expert witness.

Just last week the IRS put out a request for submissions for a pilot program to track cryptocurrency transactions. A staff member at the IRS confirmed to Cointelegraph that this new contract is not a response to that request.

Blockchain Analytics and Tax Software had not responded to Cointelegraph’s request for comment as of press time.

IRS investigative capabilities played a major role in a massive seizure of crypto bound for terrorist networks last month.

Meanwhile, for more civilian purposes, this year’s tax forms in the U.S. will put the question of whether a taxpayer used crypto in 2020 front and center.