Two members of the United States Congress have written a letter to the heads of the Treasury and the Internal Revenue Service, demanding the implementation of tax regulations for the crypto industry.
In a letter Addressed to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, US representatives Brad Sherman and Stephen Lynch raised concerns about compliance practices in the crypto industry, stating:
“For years now, that (cryptocurrency) industry has been a major source of tax evasion and a significant part of the (US) nation’s tax gap.”
The duo highlighted an audit report from September 2020, in which the Treasury Inspector General for Tax Administration He pointed to the IRS’s inability to identify pro-crypto taxpayers due to non-reporting.
The #Cryptocurrency industry has been a major source of tax evasion & a significant part of the nation’s tax gap.
—Congressman Brad Sherman (@BradSherman) June 5, 2023
The cryptocurrency industry has been a major source of tax evasion and a significant part of the nation’s tax gap. Today, along with @RepStephenLynch, I urged the US Treasury and IRS to publish proposed regulations that would bring the crypto industry into full tax compliance.
Besides, The Bipartisan Infrastructure Investment and Jobs Act, signed into law by President Joe Biden in November 2021, required taxpayers to report crypto transactions beginning in 2023. However, congressmen said that “the proposed regulations have not yet been enacted.”
Sherman and Lynch called for the prompt publication of proposed regulations to “close the tax gap and bring the crypto industry to full tax compliance.”
In May, the Biden administration renewed its push to implement a 30% Digital Asset Mining Energy (DAME) tax on cryptocurrency miners, which was first announced as part of Biden’s fiscal year 2024 budget in March 2023. However, the proposed tax on cryptocurrency mining was not included in the May legislation that addressed raising the US debt ceiling.
Yes, one of the victories is blocking proposed taxes.
— Warren Davidson (@WarrenDavidson) May 29, 2023
Yes, one of the victories is to block the proposed taxes.
While concerns about a 30% tax on cryptocurrency mining have subsided, cryptocurrency advocates believe it is a temporary deal. CoinMetrics co-founder Nic Carter believes the administration will try again to impose the tax in some general bill in the future.
The White House has yet to respond to Cointelegraph’s request for comment on its plans regarding the 30% tax on Digital Asset Mining Energy (DAME).
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