US Treasury Quells Fears, Set to Clarify New Crypto IRS Reporting Requirements

In a sign of relief for the crypto community, the US Treasury Department is expected to clarify a set of newly proposed rules aimed at tightening reporting requirements for virtual currencies to the IRS.

According to Bloomberg, which cited a Treasury official familiar with the matter, the new guidance, which is part of the $1.2 trillion infrastructure bill recently passed by the Senate, will only affect those entities that act as crypto brokers. Digital coin miners, developers, and equipment providers will not have to comply with the IRS reporting requirements.

The latest guidance, which is expected to be made public as early as next week, is supposed to provide additional clarity for the crypto industry regarding the original tax provision outlined in the infrastructure bill. Crypto enthusiasts have objected to the bill’s vague language, raising concerns that it would force too many of the industry’s companies to meet difficult digital asset data reporting requirements.

However, rather than issuing a blanket exception, based on the firm’s identification, the IRS will have the authority to determine — via its own subjective opinion — whether or not the company’s actions are classified as brokerage activity as per the new tax code.

The tax provision, which is expected to bring in an estimated $28 billion in new revenue over a decade, was included in the bill as a way to pay for the new spending initiatives. The Treasury’s clarification is vital, because once the legislation is up for debate in the House, lawmakers will likely be unable to alter the language in the crypto section as it would open the bill up for further revisions.

The latest efforts are part of the Treasury’s attempt to address loopholes in the tax reporting system. According to IRS Commissioner Chuck Rettig, virtual currencies have significantly contributed to the widening gap between what is owed to the IRS and what the agency actually collects.


Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

First Majestic Posts Record Quarterly Silver Production In Q3

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

Related News

Grayscale Is Losing the ETF Game, Transfers $800 Million More to Coinbase

In the initial days of trading as an ETF, Grayscale Bitcoin Trust (GBTC) has witnessed...

Wednesday, January 17, 2024, 03:14:00 PM

Shares of Bitcoin Miners May Entail More Risk Than Bitcoin Itself

Bitcoin prices have risen almost exponentially over the last nine months. Reflexively, stocks in many...

Monday, December 28, 2020, 09:00:00 AM

Is Asia About To Crack Down On Crypto?

A growing concern over the use of cryptocurrency in facilitating cybercrime and money laundering has...

Friday, October 6, 2023, 03:49:00 PM

Sweden Unveils Plan to Adopt E-Krona as Idea of Cashless Societies Gains Momentum

It appears that the idea of cashless societies is beginning to gain momentum, with Swedish...

Sunday, December 20, 2020, 03:31:00 PM

US Airlines Reach Agreements with Treasury for Federal Loans

Back in March when the CARES Act was put in place, the federal government earmarked...

Friday, July 3, 2020, 12:58:00 PM