The U.S. Internal Revenue Service (IRS) says it needs the authority of Congress to get the information it needs to regulate cryptocurrency. “We are challenged frequently and it is vital that Congress have a clear dictation of the authority to collect this information,” said IRS Commissioner Charles Rettig.
IRS says it takes more authority to collect crypto data
IRS Commissioner Charles Rettig said Tuesday during a hearing for the Senate Finance Committee that the IRS needed more authority to carry out its job of regulating cryptocurrency. He said:
I think we need the authority of Congress. We are challenged frequently, and it is vital that Congress have a clear dictate of the authority to collect this information.
The commissioner noted that the cryptocurrency market is growing and is now worth around $ 2 trillion, with more than 8,600 exchanges worldwide.
The Biden government has proposed requiring companies to report information on cryptocurrency transactions worth more than $ 10,000 to the IRS. This is part of the government’s wider effort to fight tax evasion. “Cryptocurrency already poses a significant detection problem as it facilitates illegal activities, including tax evasion,” said the US Treasury Department.
Most cryptocurrencies are designed not to stay on the radar screen.
The IRS recently issued a subpoena from John Doe to the Circle cryptocurrency exchanges, including Poloniex and Kraken, for a record of their cryptocurrency users. The tax authorities are looking for “information about US taxpayers who have made at least the equivalent of US $ 20,000 in transactions in cryptocurrency between 2016 and 2020” on these exchanges. The subpoena instructs the exchanges to “compile records that identify the US taxpayers described above, along with other documents relating to their cryptocurrency transactions.”
Robert Wearing, deputy associate chief counsel for procedures and administration for the IRS, said last month that the agency would seize and sell cryptocurrencies to meet tax collection if taxpayers fail to meet their tax obligations. In March, the IRS launched Operation Hidden Treasure to target unreported crypto revenue.
What do you think of the IRS seeking a congressional authority to collect crypto data? Let us know in the comment section below.
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