The Biden administration’s proposal to strengthen tax compliance includes a requirement to pass information about cryptocurrency transactions exceeding $10,000 to the Internal Revenue Service (IRS), according to a report from the U.S. Treasury Department.<\/p>\n
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Officials say digital assets are a “serious problem”. They facilitate illicit activity, including tax evasion.<\/p>\n
\n“It is expected that the role of cryptocurrency transactions will increase over the next decade,” the report states.<\/p>\n<\/blockquote>\n
Introducing new rules will minimise the opportunities to conceal income, the Treasury said. According to the document, the reporting regime will extend to “foreign financial institutions, cryptocurrency exchanges and custodians”.<\/p>\n
\n“As with traditional transactions, a business receiving crypto assets with a fair market value above $10 000 will also be required to report them,” the department stressed.<\/p>\n<\/blockquote>\n
The measures are expected to take effect in 2023.<\/p>\n
Earlier, the IRS clarified that US residents do not need to report the purchase of cryptocurrency<\/a> on the first page of Form 1040 if they follow the Buy&Hold strategy. Buy&Hold<\/span>.<\/p>\n
In May 2021, authorities clarified that they regard digital assets as property that can be seized<\/a> to satisfy tax debts.<\/p>\n
The American Families Plan Tax Compliance Agenda<\/a> by ForkLog<\/a> on Scribd<\/p>\n