U.S. Senators Call for Swift Implementation of Crypto Tax Reporting Rule
A group of seven U.S. senators, including Elizabeth Warren and Bernie Sanders, have written a letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel urging the swift implementation of the proposed crypto broker reporting rule. The senators express concern over the two-year delay in implementing the rule, stating that it contradicts the requirements of the bipartisan Infrastructure Investment and Jobs Act and causes the government to lose out on tax revenue.
Importance of Implementing the Rule
The senators emphasize that implementing the reporting rule is crucial for ensuring compliance with tax obligations and preventing tax avoidance in the crypto industry. The rule requires brokers to provide users with necessary information for tax filing purposes and share income data from crypto trades with the IRS. It also defines brokers as parties who facilitate crypto sales and possess knowledge of the seller’s identity and transaction details.
Combatting Industry Resistance
The lawmakers argue that promptly implementing the rule would counter industry attempts to evade regulation, provide clarity for law-abiding taxpayers, and generate significant tax revenue from a historically tax-avoidant sector. They request an update from the Treasury Department and IRS on their progress in implementing the rule by October 24, 2023.
Hot Take: Urgency Needed in Implementing Crypto Tax Reporting Rule
The call by seven U.S. senators for the rapid implementation of the crypto broker reporting rule highlights their concern over delays that could hinder tax compliance and result in lost revenue for the government. By urging swift action, they aim to combat industry resistance, ensure clarity for taxpayers, and generate substantial tax income from the crypto sector. Implementing this rule promptly will be crucial in addressing tax avoidance practices prevalent in this industry.
By
By
By