IRS asks Congress for authority to regulate cryptocurrencies, will expand crypto tax enforcement budget

The IRS will expand crypto tax enforcement and will also bring in outside experts to help regulate cryptocurrencies.

IRS asks Congress for authority to regulate cryptocurrencies, will expand crypto tax enforcement budget

At a June 8 Senate Finance Committee hearing, IRS Commissioner Charles Retting asked Congress to authorize regulation of cryptocurrencies, saying, “We need more tools, and we need additional resources.” Retting added that the U.S. over data “wants” to work with Congress. At press time, the price of bitcoin had fallen to $33,539, a daily decline of 2.79 percent, according to data from the BitPush terminal.

With the recent flurry of unrest, a congressional mandate to regulate cryptocurrencies is urgent, Retting said, noting that “the market capitalization of cryptocurrencies around the world has recently reached $2 trillion, and there are 8,600 exchanges. It is the ease with which cryptocurrencies can evade regulation that has created a steady stream of trouble.” The IRS has also issued multiple John Doe subpoenas used to collect information on users of cryptocurrencies.

As a result, the IRS will be expanding crypto tax enforcement and will also have outside experts to assist in regulating cryptocurrencies.

The IRS FY2022 budget report shows that the FY2022 budget is $13.2 billion, an increase of $1.2 billion compared to FY2021. For the enforcement budget, the IRS is requesting $5.46 billion, an increase of $458 million year-over-year. the IRS is also investing an additional $32 million in ongoing crypto and cyber operations, including funding for outside professionals and building a complete internal dashboard for cryptocurrency and blockchain analysis. The report states, “At IRS-CI’s Western CCU, specialty contractors assisted in development efforts to build an in-house CI-owned dashboard called SRTIKES for cryptocurrency/blockchain analytics. This tool pools the full power of existing products and then leverages their individual strengths.” Of the $32 million budget, $23 million will be invested in “contractor services. This program will introduce the “One-IRS” approach to combat all irregularities in the crypto market.

The fiscal year budget report is much more detailed than the federal budget green paper released by the Biden administration in late May. Back in April, IRS Commissioner Charles Retting suggested to Congress that regulation of cryptocurrencies could help close the tax gap, and Senator Rob Portman of Ohio responded by saying that legislation in this area was in the works, however no bill has been announced.

This fiscal year budget report hints at the arrival of an information audit of crypto transactions. The IRS declined to comment, and any proposed adjustments would need to be made prior to final approval of the report, with all other requirements taking effect after Dec. 31, 2022.

Image credit: Bloomberg, BitcoinExchangeGuide

Author: Emma Sha

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-06-08 21:48
Next 2021-06-08 21:52

Related articles