Biden

Billion

Members of the US Senate have called on the Treasury Department and IRS to implement crypto tax reporting guidelines before 2026. Lawmakers argue a delay in implementation could cause the IRS to lose billions in revenue.&nbsp; 
A group of seven US Senate members have sent a letter to the US Internal Revenue Service (IRS) Commissioner Daniel Werfel and Treasury Secretary Janet Yellen in which they insist crypto tax reporting requirements be implemented before 2026.&nbsp; 
<h2 id="delays-could-see-the-irs-lose-roughly-50-billion-in-revenue">Delays Could See the IRS Lose Roughly $50 Billion in Revenue </h2> 
Members of the Senate, including Elizabeth Warren and Bernie Sanders, have urged the Treasury Department and IRS to implement tax reporting requirements for crypto brokers “as swiftly as possible.”&nbsp; 
In an October 10 <a href="https://www.warren.senate.gov/imo/media/doc/2023.10.10%20Letter%20to%20Treasury%20&amp;%20IRS%20on%20Crypto%20Broker%20Reporting%20Rule.pdf">letter</a>, the senators argued a two-year delay in the requirement’s implementation could see the IRS lose around $50 billion in annual tax revenue. The <a href="https://www.reuters.com/markets/us/biden-administration-unveils-new-crypto-tax-reporting-rules-2023-08-25/">proposed requirements</a>, scheduled to take effect in 2026 for 2025 transactions, were unveiled by the Biden administration in August.&nbsp; 
In addition to the IRS potentially losing out on billions, senators also suggest the current tax policies would allow bad actors to continue committing tax evasion.&nbsp;&nbsp; 
In the letter, the Senators state: 
<blockquote> 
 “While we applaud the substance of the proposed regulations and your agencies’ efforts to ensure taxpayers continue to report crypto activity, we are deeply concerned that the final rule will not become effective until 2026.”&nbsp; 
</blockquote> 
Adding, 
<blockquote> 
 “[A]ny delay would give crypto lobbyists even more opportunity to undermine the Administration’s efforts to impose basic reporting requirements on the nearly unregulated crypto sector, at a time when the industry is already pushing to repeal the recently enacted reporting requirements. The time to act is now.”&nbsp; 
</blockquote> 
<h2 id="treasury-clarifies-tax-reporting-rules">Treasury Clarifies Tax Reporting Rules</h2> 
According to the Biden administration’s proposed rules, Treasury <a href="https://cryptodaily.co.uk/2023/08/us-unveils-new-crypto-tax-reporting-guidelines">clarified</a> the definition of a “broker” in terms of the crypto industry. It further defined how crypto companies and investors must adhere to reporting obligations and addressed the issue of whether DeFi platforms and miners need to collect their users’ personal data. 
Under the proposal, crypto miners are exempted from tax rules, but some DeFi platforms may not receive similar accommodations. 
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Senators Urge IRS To Implement Crypto Tax Reporting Guidelines Before 2026

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