Seven Senators Urge Treasury and IRS to Rapidly Implement Crypto Tax Reporting Rule – Seven U.S. senators have urged the Treasury Department and the IRS to swiftly put into effect the proposed rule on cryptocurrency broker reporting. They expressed concern over the two-year self-inflicted delay in implementing this rule. Senators Elizabeth Warren, Angus King, Richard Blumenthal, Gary Peters, Bernie Sanders, Sheldon Whitehouse, and Brian Schatz penned a letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel regarding taxation in the realm of cryptocurrency.
“We write regarding the Treasury Department and Internal Revenue Service’s (IRS) recently proposed rule concerning tax reporting requirements for crypto brokers,” the letter begins. “We are alarmed by the self-inflicted two-year delay for the rule’s implementation, which would contravene the requirements of the bipartisan Infrastructure Investment and Jobs Act, disadvantage law-abiding Americans, and cause the federal government to lose out on billions of dollars in tax revenue,” the lawmakers emphasized.
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Adding: “We urge your agencies to limit this troubling delay and implement the final rule as swiftly as possible, while maintaining the rule’s substance in the face of industry attacks.” The reporting rule requires brokers to “provide crypto users with the information they need to file their taxes through a modified 1099 form” and “provide the IRS with income information from crypto trades so that would-be tax avoiders are easier to track down,” the senators explained.
Moreover, the rule defines “brokers” to include “any party who facilitates crypto sales while in a position to know the identity of the seller and the nature of the transaction,” the letter clarifies. “Limiting any further delay in the implementation of the Administration’s proposed rule would combat industry efforts to evade regulation, provide clarity to law-abiding taxpayers, and generate billions in tax revenue from a chronically tax-avoidant industry,” the lawmakers noted.
Adding: “Accordingly, we request that the Treasury Department and IRS implement the proposed crypto broker reporting rule as rapidly as possible and ask that you provide an update by October 24, 2023 on your efforts to do so.” The call from seven U.S. senators for the prompt implementation of the proposed crypto broker reporting rule underscores the growing urgency in regulating the cryptocurrency landscape.
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