Seven U.S.-based senators have called on the IRS (Internal Revenue Service) and Treasury Department to ‘implement the proposed crypto broker reporting rule as rapidly as possible.’ The lawmakers stressed at the same time, “We are alarmed by the self-inflicted two-year delay for the rule’s implementation.”
Senators Want Crypto Tax Reporting Rule Implemented Swiftly:
Senators Brian Schatz, Sheldon Whitehouse, Bernie Sanders, Gary Peters, Richard Blumenthal, Angus King, and Elizabeth Warren sent a letter to Daniel Werfel, the commissioner of IRS (Internal Revenue Service), and Janet Yellen, the Treasury Secretary, on the 10th October concerning crypto taxation.
The letter starts with, “We write regarding the Treasury Department and Internal Revenue Service’s (IRS) recently proposed rule concerning tax reporting requirements for crypto brokers. 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 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 basic reporting rule needs brokers to “provide crypto users with the information they need to file their taxes through a modified 1099 form” as well as “provide the IRS with income information from crypto trades so that would-be tax avoiders are easier to track down,” the senators explained.
Meanwhile, the rule actually encourages “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.
The lawmakers also noted adding, “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.”