U.S. lawmakers demand implementation of tax reporting for crypto brokers
U.S. lawmakers demand implementation of tax reporting for crypto brokers
Seven U.S. Senators have written a formal letter to the U.S. Department of the Treasury and the Internal Revenue Service (IRS) demanding the immediate implementation of cryptocurrency tax regulations.
The lawmakers (Elizabeth Warren, Angus King, Richard Blumenthal, Gary Peters, Bernie Sanders, Sheldon Whitehouse, and Brian Schatz) are convinced that it is necessary to implement the reporting of crypto brokers as soon as possible. According to them, the implementation of these plans has been delayed for more than two years, reports Bitcoin.com.
On October 10, an appeal from the senators was sent to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel: "We urge your agencies to limit this troubling delay and implement the final rule as swiftly as possible, while maintaining the rule's substance in the face of industry attacks."
The Senators stated that they are extremely alarmed by the two-year delay in implementing the tax reporting requirements, which is contrary to the requirements of the bipartisan Infrastructure Investment Act. The petitioners also emphasized that this policy shortchanges Americans while costing the government billions of dollars in revenue.
The letter to Janet Yellen states that the Treasury Department should address this delay and implement the tax reporting rule as soon as possible.
The previously proposed reporting rule is based on the fact that cryptocurrency companies and brokers must provide cryptocurrency users with all information to be included on their tax returns through the amended Form 1099. Tax authorities will have to track down possible tax evaders. This rule applies to any business that sells cryptocurrency and still needs to know the identity of the seller and the nature of the transaction.
Eliminating further delay in the Administration's proposed rule will promote industry development and regulation and provide clarity for taxpayer reporting. It will also bring billions in tax revenue from the industry to the budget.
The senators urged the Treasury Department and the IRS to implement tax reporting for crypto brokers and provide updated information by October 24, 2023.
See also: Gary Gensler received a stern warning from the U.S. Congress.
