would

The White House is reviewing the Internal Revenue Service’s proposal to join the global Crypto-Asset Reporting Framework, which would provide the tax department with access to Americans’ foreign crypto account data.
Adoption of the “Broker Digital Transaction Reporting” proposal — submitted to the White House last Friday — would put the US crypto tax system in line with <a href="https://www.oecd.org/content/dam/oecd/en/networks/global-forum-tax-transparency/commitments-carf.pdf" rel="noopener noreferrer nofollow" target="_blank">72</a> other countries that have committed to implementing CARF by 2028.
While the proposal wasn’t categorized as “economically significant” by the IRS, the rule would force Americans to be far more stringent in <a href="https://cointelegraph.com/learn/articles/how-to-file-crypto-taxes" rel="noopener noreferrer nofollow">reporting capital gains tax</a> from foreign crypto platforms. 
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 <img src="https://s3.cointelegraph.com/uploads/2025-11/019a947b-142b-7c70-8c23-63c92731d045" title="" alt="White House weighs IRS bid to tax foreign crypto accounts via CARF">
 <figcaption style="text-align: center;">
 Details of the Broker Digital Transaction Reporting proposal submitted to the White House. Source: <a href="https://www.reginfo.gov/public/do/eoDetails?rrid=1169515" rel="noopener noreferrer nofollow" target="https://www.reginfo.gov/public/do/eoDetails?rrid=1169515">US Government</a>
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 In late July, the White House’s crypto policy recommendations report stated that implementing CARF would discourage American taxpayers from moving their digital assets to <a href="https://cointelegraph.com/news/cftc-pathway-americans-trade-offshore-crypto-exchanges" rel="noopener noreferrer nofollow">offshore exchanges</a> and thus not put <a href="https://cointelegraph.com/news/kraken-mica-license-ireland" rel="noopener noreferrer nofollow">US crypto platforms</a> at a disadvantage.
<h2 id="more-than-one-third-of-the-world-has-signed-up-to-carf">More than one-third of the world has signed up to CARF</h2>
CARF is <a href="https://cointelegraph.com/learn/articles/crypto-asset-reporting-framework-carf" rel="noopener noreferrer nofollow">set to be rolled out </a>in 2027, with 50 countries to join, including Brazil, Indonesia, Italy, Spain, Mexico and the UK. Another 23 countries — including the US — have seemingly committed to implementing CARF by 2028.
CARF was established by the Organization for Economic Cooperation and Development in late 2022 to enable member nations to share cryptocurrency data for the purpose of combating international tax evasion.
Crypto has presented a challenge for tax authorities, as users can transfer assets across borders instantly, hold funds in self-custody wallets outside the traditional banking system, and transact pseudonymously.&nbsp;
<h2 id="us-to-roll-out-tougher-local-crypto-tax-rules-in-2026">US to roll out tougher local crypto tax rules in 2026</h2>
The US is set to roll out 1099-DA forms in January 2026, which will require US-based crypto exchanges to report more detailed transaction data, including both inward and outward transfers.
Related: <a href="https://cointelegraph.com/news/crypto-market-structure-influence-us-midterms" rel="noopener noreferrer nofollow">How market structure votes could influence 2026 crypto voters</a>
US-based crypto tax lawyer Clinton Donnelly <a href="https://x.com/CryptoTaxFixer/status/1989369483908337758" rel="noopener noreferrer nofollow" target="_blank">said</a> the 1099-DA would mark the beginning of the end of <a href="https://cointelegraph.com/news/fatf-regulations-is-it-the-end-of-crypto-anonymity" rel="noopener noreferrer nofollow">crypto anonymity </a>in a post to X last Friday.
“Right now, the IRS doesn’t have instant visibility into everything you’re doing on the blockchain. However, that’s about to change,” Donnelly said, adding:
<blockquote>
 “A few years down the road, with better tools and data integration, they’ll be able to scan blockchain networks at scale to identify major non-reporters, and target them for audits.”
</blockquote>
Magazine: <a href="https://cointelegraph.com/magazine/elon-musk-grokipedia-far-right-or-necessary-wikipedia-competitor/" rel="noopener noreferrer nofollow">Grokipedia: ‘Far right talking points’ or much-needed antidote to Wikipedia?</a>

White House weighs IRS bid to tax foreign crypto accounts via CARF

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