Jerry

Rule

Million

Read

Billion

<ul>
 <li>IRS rules could create 8 billion tax forms annually.</li>
 <li>Compliance could cost $254 billion versus IRS estimates of $136.35 million.</li>
 <li>Crypto industry sees rules as unrealistic and excessive.</li>
</ul>
The Blockchain Association has raised concerns over the IRS’s proposed broker rule, emphasizing the significant administrative and financial burden it could place on the cryptocurrency sector. They argue that the requirements are overly demanding and not aligned with the realities of digital finance management.
The advocacy group also points to the Paperwork Reduction Act, emphasizing that the proposed requirements go far beyond reasonable measures.
Concerns Over Compliance Costs
According to <a href="https://theblockchainassociation.org/wp-content/uploads/2024/06/2024-06-21-BA_Comment_re_Broker_PRA.docx.pdf" target="_blank" rel="noopener noreferrer nofollow">the Blockchain Association</a>, the IRS’s new rule could generate an overwhelming 8 billion 1099-DA tax forms annually. The labor required to process these forms is estimated at 4 billion hours, with compliance costs potentially reaching $254 billion yearly.
Such figures starkly contrast with the IRS’s initial estimates, which suggested the regulations would require only 0.15 hours per customer, at a total cost of around $136.35 million.
The Association believes these requirements are disproportionate to the tax gap they aim to address, which stands at approximately $10 billion. Their contention highlights a mismatch between the perceived risks and the operational strain imposed on stakeholders within the crypto market.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 8 billion forms and 4 billion hours of burdensome work costing $254 billion. That's what the IRS's proposed broker rule would result in. Today, we filed a comment letter arguing the proposed rule violates the Paperwork Reduction Act. <a href="https://t.co/Zm04wy86EZ" rel="noopener noreferrer nofollow">https://t.co/Zm04wy86EZ</a>— Blockchain Association (@BlockchainAssn) <a href="https://twitter.com/BlockchainAssn/status/1804196055392612461?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 21, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
Industry Backlash
The proposed rules have not been very well received in the crypto community and there are several reasons for that. Some people think that the IRS has some major misconceptions regarding the cryptocurrencies and the decentralised finance. This has culminated to what many regard as unrealistic and excessive rules which may hinder flexibility in activities within the blockchain subsector.
The executive director at Coin Center, Jerry Brito has explained that these requirements are almost impossible to implement especially within the decentralized platforms. The implementation problems together with the high costs of compliance have cast doubts on the viability of these measures.
Moreover, this isn’t the first time the Blockchain Association has taken a stand against IRS regulations. The group submitted a detailed 39-page <a href="https://theblockchainassociation.org/wp-content/uploads/2023/11/Blockchain-Association-Broker-Comment-Letter-2023-11-13.pdf" target="_blank" rel="noopener noreferrer nofollow">document</a> last year, outlining various objections to the IRS’s approach, reinforcing the industry’s stance against what it views as regulatory overreach.
These ongoing objections by major industry players underscore the tension between regulatory bodies and the rapidly evolving blockchain sector.
<h4 class="wp-block-heading" id="h-read-also">Read Also:</h4>
<ul class="wp-block-yoast-seo-related-links">
 <li><a href="https://cryptonewsland.com/irs-temporarily-suspends-10000-crypto-reporting-for-businesses/" rel="noopener noreferrer nofollow">IRS Temporarily Suspends $10,000 Crypto Reporting for Businesses</a></li>
 <li><a href="https://cryptonewsland.com/ftx-navigates-24-billion-irs-claim-settles-for-885-million-amid-bankruptcy/" rel="noopener noreferrer nofollow">FTX Navigates $24 Billion IRS Claim: Settles for $885 Million Amid Bankruptcy</a></li>
 <li><a href="https://cryptonewsland.com/taiwan-launches-cryptocurrency-industry-association-what-does-this-mean-for-global-regulation/" rel="noopener noreferrer nofollow">Taiwan Launches Cryptocurrency Industry Association: What Does This Mean for Global Regulation?</a></li>
 <li><a href="https://cryptonewsland.com/taiwan-launches-virtual-asset-service-providers-association-a-game-changer-in-crypto-regulation/" rel="noopener noreferrer nofollow">Taiwan Launches Virtual Asset Service Providers Association: A Game-Changer in Crypto Regulation</a></li>
 <li><a href="https://cryptonewsland.com/blockchain-association-posts-policy-counsel-job-amid-us-regulation-storm/" rel="noopener noreferrer nofollow">Blockchain Association Posts Policy Counsel Job Amid US Regulation Storm</a></li>
</ul>
The post <a href="https://cryptonewsland.com/blockchain-association-criticizes-irs-broker-rule-for-excessive-costs/" rel="noopener noreferrer nofollow">Blockchain Association Criticizes IRS Broker Rule for Excessive Costs</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.

Blockchain Association Criticizes IRS Broker Rule for Excessive Costs

Crypto News Land

Other articles published on Jun 22, 2024

Four Vietnamese Hackers Indicted in US for $71M Cybercrimes Involving Cryptocurrency

Xaman Joins Forces with C14 for Seamless XRP and Xahau Transactions

Unraveling the Mystery Behind Bitcoin Miner Reserves’ $117 Billion Leap

Oops! Forgot Your Bitcoin Password? Stefan Thomas’s 200 Million Euro Dilemma

Kraken's Fate Hangs in Balance as SEC Lawsuit Takes Unexpected Turn

Jacob Crypto Bury’s Celestial Forecast Paints MoonBag’s 10X Trajectory! With MoonBag Coin, Galact...

Join our free newsletter for daily crypto updates!