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Two members of Congress expressed concern aboutabout compliance with tax laws by crypto market participants. Parliamentarians appealed to the Secretary of the Treasury and the US Internal Revenue Service (IRS).
Brad Sherman and Stephen LynchLynch, in a letter to Minister Janet Yellen and IRS Commissioner Daniel Werfel, expressed the opinion that if crypto traders cannot evade taxes, they can significantly replenish the state treasury.
The #Cryptocurrency industry has been a major source of tax evasion & a significant part of the nation’s tax gap.
Today I, along with @RepStephenLynch, urged @USTreasury & #IRS to release proposed regulations that would bring the cryptocurrency industry into full tax compliance. pic.twitter.com/VgTlAzrOE4
— Congressman Brad Sherman (@BradSherman) June 5, 2023
Parliamentarians referred to the audit reportInspector General of Control of the Treasury of the Internal Revenue Service (TIGTA) of September 2020, where it was noted that the IRS is having difficulty identifying taxpayers making cryptocurrency transactions. This is due to the lack of tax filing requirements. In November 2021, US President Joe Biden signed into law legislation establishing reporting requirements for brokers. However, the rules have not yet been made public, congressmen are outraged.
Sherman and Lynch push for early publicationregulations to ensure full compliance with tax laws in the cryptocurrency industry. Congressmen believe that the tightening of requirements will make it possible to prosecute violators: individuals and legal entities.
In early May, the Council of Economic Advisersunder the President of the United States (CEA) proposed to introduce a thirty percent tax for miners as compensation for environmental damage. However, the US authorities changed their minds about imposing this tax.