Cryptocurrency included in Biden’s tax hike proposal Transfers over $10,000 to be reported to IRS

On May 21, Bloomberg cited a U.S. Treasury Department report that the Biden administration’s proposal to strengthen taxes also includes cryptocurrencies, meaning that every transfer of cryptocurrency worth more than $10,000 would need to be reported to the Internal Revenue Service (IRS).

Cryptocurrency included in Biden's tax hike proposal Transfers over ,000 to be reported to IRS

Regulation is one of the biggest risks for cryptocurrencies, and regulatory action is both a release of risk and beneficial to the regulation and long-term development of the industry as a whole.

On May 21, Bloomberg cited a U.S. Treasury Department report that the Biden administration’s proposal to strengthen taxes also includes cryptocurrencies, meaning that every transfer of cryptocurrencies worth more than $10,000 would need to be reported to the Internal Revenue Service (IRS).

In this report on the proposed tax enhancements, the U.S. Treasury Department wrote: “Businesses but with cryptocurrency transactions worth more than $10,000 would need to report them as if they were cash transactions.”

In addition, the Treasury Department emphasized the need for full reporting: “(Full reporting) is intended to minimize the incentive and opportunity to shift income from the emerging information sector,” adding that cryptocurrencies have “posed a significant oversight problem by widely nourishing illegal activities, including tax evasion. “

At the current price of mainstream cryptocurrencies, $10,000 is equivalent to about 0.24 bitcoins, 3.4 ethereum, 46.8 litecoin, and 25,000 dogcoins.

Bitcoin briefly fell about $3,000 on the news, but quickly recovered its losses. At press time, bitcoin was up 11% at $41,000 per coin.

Cryptocurrency-related stocks such as Coinbase and MircoStrategy shares also saw minor fluctuations. Coinbase closed up 3.8% overnight at $233.40, narrowing to 1.4% after hours; MicroStrategy closed up 3.9% overnight at $472.66, turning down 1.6% after hours.

In addition, some digital currency enthusiasts on Twitter have expressed strong protests over the news.

For his part, Kristin Smith, executive director of the Blockchain Trade Association, said the reactions were a bit excessive and that “for those who believe cryptocurrencies should be aligned with cash transactions, this policy is just right.”

In fact, as early as last year, the IRS added an entry on individual tax returns for cryptocurrencies in a bid to gain more insight into virtual currency transactions. And the U.S. Treasury Department was also proposing regulations before the year began that would require cryptocurrency brokers to declare information about their customers, as well as the transactions they facilitate, to the IRS.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/cryptocurrency-included-in-bidens-tax-hike-proposal-transfers-over-10000-to-be-reported-to-irs/
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