Avalanche

<ul> 
 <li>The Association’s letter also referenced the Paperwork Reduction Act.</li> 
 <li>The letter’s numbers show that the labor constraints and compliance costs are far higher.</li> 
</ul> 
This is not the first time the <a href="https://thenewscrypto.com/cfat-and-blockchain-association-sue-u-s-sec-over-dealer-definition/" target="_blank" rel="noreferrer noopener">Blockchain Association</a> has voiced its disapproval of the IRS’s proposed broker-dealer regulations. This time, the group is concentrating on the unfair burden that these regulations would place on cryptocurrency businesses, investors, and the IRS. 
The Association’s letter referenced the <a href="https://digital.gov/resources/paperwork-reduction-act-44-u-s-c-3501-et-seq/#:~:text=The%20Paperwork%20Reduction%20Act%20(PRA,to%20name%20a%20few%20categories." target="_blank" rel="noreferrer noopener nofollow">Paperwork Reduction Act</a>, which holds that government agencies cannot impose onerous and needless administrative obligations on persons or organizations engaged in the financial sector. 
<h3 class="wp-block-heading" id="h-labor-constraints-and-compliance-cost">Labor Constraints and Compliance Cost</h3> 
The Blockchain Association’s spokespeople said that the new regulations would increase the yearly compliance cost to $254 billion, necessitate the processing of 8 billion 1099-DA tax forms, and waste 4 billion hours of work. 
The letter’s numbers show that the labor constraints and compliance costs are far higher than what the <a href="https://thenewscrypto.com/consensys-urges-u-s-irs-to-postpone-crypto-tax-reporting-rules/" target="_blank" rel="noreferrer noopener">IRS</a> had anticipated. They had predicted that the new laws would take 0.15 hours per customer to complete, and that the overall cost of compliance would be $136,350,000. 
In addition, the Blockchain Association came to the conclusion that $245 billion in yearly compliance expenditures was totally excessive for a market and asset class that only generate a $10 billion tax deficit at best. In 2023, the Blockchain Association sent a lengthy letter to the IRS outlining several concerns over the proposed broker laws. The letter was 39 pages long. 
Some participants in the blockchain ecosystem, such as decentralized financial protocols, would find it difficult, if not impossible, to comply with the new broker reporting regulation from the Internal Revenue Service, according to the industry advocacy group. 
Highlighted Crypto News Today: 
<a href="https://thenewscrypto.com/avalanche-avax-price-dips-10-after-major-sell-off-concerns/" target="_blank" rel="noreferrer noopener">Avalanche (AVAX) Price Dips 10% After Major Sell-Off Concerns</a>

Blockchain Association Criticizes IRS Broker-Dealer Regulations

Table of Contents

TheNewsCrypto

Other articles published on Jun 22, 2024

Something Big Is Coming for AI Altcoins: Don’t Miss This Important Narrative

MoonBag Presale Gains Favourable Attention That Surpasses the Likes of BitBot and Cardano

CYBRO Reaches New Milestone and Is Named ‘Most Promising ICO of 2024’ While Notcoin and PEPE Inve...

Top 3 Altcoins with Outstanding Potential

OpenAI CTO Mira Murati Says Realizing AI’s Potential Is Not Guaranteed

Politicoin, according to Bitfinex’s analysts, will experience volatility.

Join our free newsletter for daily crypto updates!