Rule

The Blockchain Association is fighting back against new tax rules proposed by the Internal Revenue Service (IRS), arguing that they’re far too complex and costly to implement.
In a recent letter, the Washington DC-based group that advocates for the crypto industry claims the IRS’s new “broker-dealer” rules violate the Paperwork Reduction Act, which prevents government agencies from creating unnecessarily complicated paperwork.
The Association paints a concerning picture of what could happen if these rules take effect. They estimate it would create 8 billion new tax forms, require 4 billion hours to process, and cost $254 billion annually to comply with the rules.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXdnrbmBbkFHPZN8roDYBD3nwOhG8N3FuwV3q7h_l8JlaMfmTMbESbyfLyxu_xBMmP9Nl2oVqUQ-S5ZPOX__ssvzp5ZqUlVa8us1NB9iMAtZ0uwCii7n_BgpQDUk-yzXlAu02NZnUpK7-vWoZwH-Xd5DGShS?key=Sp3ubniDIfPOPmtVyASsiQ" alt="AD 4nXdnrbmBbkFHPZN8roDYBD3nwOhG8N3FuwV3q7h l8JlaMfmTMbESbyfLyxu xBMmP9Nl2oVqUQ S5ZPOX ssvzp5ZqUlVa8us1NB9iMAtZ0uwCii7n BgpQDUk yzXlAu02NZnUpK7 vWoZwH Xd5DGShS?key=Sp3ubniDIfPOPmtVyASsiQ">
 <figcaption class="wp-element-caption">
 Blockchain Association’s Letter to the IRS | Source: <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">Blockchain Association</a>
 </figcaption>
</figure>
These figures are significantly higher than the IRS’s initial projections, which estimated about 9 minutes per customer and a total cost of $136 million. The Blockchain Association argues it’s unreasonable to impose such a hefty burden on an industry that, at most, might be underpaying $10 billion in taxes.
In the letter, the Association states: “To require the industry to spend over $250 billion per year to help lower a tax gap that is, at the highest conceivable level, $10 billion per year, is completely unreasonable.”
The Association also criticizes the lack of practical utility of the proposed regulations, pointing out that they would require reporting on trivial transactions and assets like stablecoins, which rarely result in taxable gains or losses.
However, this isn’t the time the association has voiced concerns. Last year, the Blockchain Association submitted a detailed <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">39-page letter</a> arguing that many entities in the blockchain ecosystem would struggle to comply with the proposed regulations. The crypto space awaits the IRS’s response to the latest objections
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/06/22/michael-hints-possible-btc-strategy-for-dell-technologies/" rel="noopener noreferrer nofollow">Michael Hints Possible BTC Strategy for Dell Technologies</a>
</blockquote>

Blockchain Association Challenges IRS Broker Rule in Recent Letter

The Crypto Times

2024年6月21日公開の他の記事

Bitcoin ETFs lose $140 Million amid ongoing US fund withdrawal

Bitcoin ETF Funds See Persistent Outflows

VanEck’s VBTC ETF Debuts on ASX with Over $1.5M in Trading Volume

BoundlessPay’s $BPay Token LBP Launch on Fjord Foundry: Empowering Users with Next-Gen Digital Ba...

Decimal Digest

Binance Integrates USDT on TON, Boosts Liquidity Efficiency

ニュースレターを購読して暗号資産の最新情報を毎日入手！