The U.S. Department of the Treasury wants businesses that receive crypto payments above $10,000 to report them to the Internal Revenue Service.
Digital currencies, which are still unregulated in the United States, are seen as an increasing issue by the government. One of the reasons is the speculation crypto is being used for illegal activities. The second is tax evasion, which is very harmful to the country’s economy.
“Still another significant concern is virtual currencies, which have grown to $2 trillion in market capitalization. Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion.”THE AMERICAN FAMILIES PLAN TAX COMPLIANCE AGENDA
In a paper published titled “THE AMERICAN FAMILIES PLAN TAX COMPLIANCE AGENDA”, the US Treasury is growing focus on digital currencies. This is part of Biden’s administration plan to collect more tax money. Through higher taxes for rich citizens and tougher regulations, Biden wants to put in motion the $1.8 trillion agenda. This proposal would offer paid family leave, free pre-kindergarten, and community college.
“Further, as with cash transactions, businesses that receive cryptoassets with a fair market value of more than $10,000 would also be reported on. Although cryptocurrency is a small share of current business transactions, such comprehensive reporting is necessary to minimize the incentives and opportunity to shift income out of the new information reporting regime.”THE AMERICAN FAMILIES PLAN TAX COMPLIANCE AGENDA