US Senators Push for Crypto Tax Rules
Four U.S. senators have sent a letter to the Department of the Treasury and the Internal Revenue Service (IRS) urging them to implement crypto tax reporting rules by December 2023. The senators warn of a potential $1.5 billion loss in tax revenue if the rules are not implemented. The letter refers to the Infrastructure Investment and Jobs Act (IIJA), which directed the Treasury and IRS to implement rules for third-party crypto brokers but has not yet been published. Research suggests that around half of taxes owed on crypto transactions go unpaid each year, and crypto tax evasion accounts for about 10% of total unpaid taxes annually. The senators argue that implementing the rules would help close the crypto tax gap and generate significant tax revenue.
Key Points:
- Four U.S. senators have urged the Treasury and IRS to implement crypto tax reporting rules by December 2023.
- The senators warn of a potential $1.5 billion revenue loss if the rules are not implemented.
- Research suggests that around half of taxes owed on crypto transactions go unpaid each year.
- The senators argue that implementing the rules would help close the crypto tax gap and generate significant tax revenue.
- The IRS and Treasury have been given a deadline of August 15, 2023, to respond to the senators’ letter.
Hot Take:
The push for crypto tax rules by U.S. senators highlights the concern over unpaid taxes and tax evasion in the crypto space. Implementing these rules is seen as a way to address the tax gap and generate significant revenue. It remains to be seen how the Treasury and IRS will respond and whether the proposed rules will be implemented by the December 2023 deadline.
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