The US Internal Revenue Service (IRS) says it needs Congressional authority to obtain the information it needs to regulate cryptocurrency. “We are repeatedly challenged and it is important to get clear instructions from Congress on the right to collect information,” said IRS Commissioner Charles Rattig.
IRS says it needs more authorization to collect crypto data
IRS Commissioner Charles Ratig said during a Senate Finance Committee hearing on Tuesday that the IRS needs more authority to do its job in regulating cryptocurrency. He said:
I think we need the right of Congress. We are challenged time and again and it is important to get clear instructions from Congress on the right to collect information.
The commissioner added that the cryptocurrency market is growing and is now valued at around $2 trillion, with more than 8,600 exchanges worldwide.
The Biden administration has proposed requiring businesses to report information on cryptocurrency transactions worth more than $10,000 to the IRS. This is part of the administration’s wider efforts to crack down on tax evasion. “Cryptocurrencies have already become a significant identity problem by facilitating widespread illegal activity, including tax evasion,” the US Treasury Department said.
Most cryptocurrencies, virtual currencies are designed to stay off the radar screen.
IRS Recently Issued John Doe Summons to Cryptocurrency Exchanges Circle, including Poloniex, and Kraken To get the records of your cryptocurrency users. The tax agency solicits information on these exchanges “on U.S. taxpayers who transacted at least $20,000 in cryptocurrency transactions during the years 2016 to 2020.” The summons instructs exchanges to “produce records identifying the US taxpayers described above, as well as other documents relating to their cryptocurrency transactions.”
Robert Waring, the IRS’s deputy associate chief counsel for Procedure and Administration, said last month that the agency Seize Cryptocurrencies and sell them to satisfy tax collection if taxpayers fail to meet their tax obligations. In March, the IRS launched Operation Hidden Treasure To target unreported crypto earnings.
What do you think of the IRS seeking Congressional authority to collect crypto data? Let us know in the comments section below.
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