The U.S. Treasury Department is helping? Its officials will clarify the crypto tax reporting rules in the Infrastructure Act

According to reports, the US Treasury Department is trying to clarify the definition of brokers in the bipartisan infrastructure bill passed in the Senate last week, and is careful to ensure that the new legislation will not affect the innovation and growth of the blockchain industry.

According to Bloomberg, the U.S. Treasury Department is preparing guidelines on what types of crypto companies will need to comply with the IRS’s new reporting requirements. The report pointed out that the definition of “broker” may be narrowed from what many people worry about, including protocol developers and wallet providers currently operating in the cryptocurrency industry.

According to reports, a Treasury official told Bloomberg that developers, miners and wallet providers will not be subject to the new reporting requirements as long as they do not act as brokers. Christopher Condon and Laura Davidson wrote: “The Treasury Department’s guidelines do not grant full exemptions based on the status of a company, but rather focus on whether a company’s activities meet the requirements of the tax law as a broker.”

At the time of writing, the U.S. Treasury Department has not publicly confirmed whether these plans are true.

As reported by Cointelegraph, President Biden’s infrastructure bill was passed in the U.S. Senate last week, but did not provide much-needed clarification on cryptocurrency companies. Senator Pat Toomey, Republican of Pennsylvania, stated that the bill “imposes a severely flawed and unimplementable cryptocurrency tax reporting requirement under certain circumstances, threatening future technological innovation.”

Toomey and his bipartisan colleagues Ron Wyden and Cynthia Lummis proposed an amendment to exclude contract developers from tax reporting requirements. Probably for political reasons, the amendment failed to be included in the 2,700-page infrastructure bill that was voted by the Senate last week.

The bill must be approved by the House of Representatives before it becomes law. Although the timing of the House vote is unclear, at least nine Democrats have warned the Speaker of the U.S. House of Representatives, Nancy Pelosi, that they will not vote for the budget resolution until the infrastructure agreement is passed.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-u-s-treasury-department-is-helping-its-officials-will-clarify-the-crypto-tax-reporting-rules-in-the-infrastructure-act/
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