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Members of the US Congress – Brad Sherman and Stephen Lynch – wrote a letter to the heads of the Treasury and the Internal Revenue Service (IRS), demanding tax rules for the cryptocurrency industry.
In a letter addressed to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, Rep. Sherman and Lynch raised concerns about cryptocurrency tax compliance practices, stating:
“For years, this (crypto) industry has been a major source of tax evasion and a large part of the national (US) tax deficit.”
The duo drew attention to a September 2020 audit report in which the Treasury’s Inspector General for Tax Administration (TIGTA) pointed out the IRS’s failure to identify cryptocurrency-supporting taxpayers due to a lack of reporting.
The #Cryptocurrency industry has been a major source of tax evasion & a significant part of the nation’s tax gap.
— Congressman Brad Sherman (@BradSherman) June 5, 2023
In addition, the Infrastructure Investment and Jobs Act (a bipartisan infrastructure bill) signed into law by President Joe Biden in November 2021 requires taxpayers to report cryptocurrency transactions starting in 2023. However, congressmen said that “the proposed rules have not yet been adopted.” made public.”
Already in mid-2023, Congressmen Sherman and Lynch called for the speedy release of the proposed rules in order to “close the tax gap and bring the cryptocurrency industry into full tax compliance.”
Related: Penalties and Regulation: The Ever-Growing Landscape of Cryptocurrency Compliance
In May, the Biden administration renewed its efforts to implement a 30 percent Digital Asset Mining Energy Tax (DAME) on cryptocurrency miners, first announced as part of Biden’s FY 2024 budget in March 2023. in the May law regarding the increase in the ceiling of the US national debt.
Yes, one of the victories is blocking proposed taxes.
— Warren Davidson (@WarrenDavidson) May 29, 2023
While fears of a 30 percent tax on cryptocurrency mining have been dispelled, cryptocurrency advocates see it as a temporary deal. Coin Metrics co-founder Nick Carter believes that in the future, the administration will re-attempt to introduce the tax in some kind of omnibus bill.
The White House has yet to respond to Cointelegraph’s request for comment on its plans to implement the DAME tax.