Two members of the United States Congress have penned a letter to the heads of the Treasury and Internal Revenue Service demanding that tax regulations be implemented for the crypto industry.
US Representatives Brad ShermanAnd Stephen Lynch In their letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, they expressed their concerns about compliance regulations in crypto. The two highlighted an audit report in September 2020 by the Treasury Tax Administration Inspector General (TIGTA) that pointed out that the IRS was unable to identify pro-crypto taxpayers due to lack of reporting. In addition, the Infrastructure Investment and Jobs Act, signed by President Joe Biden in November 2021, required taxpayers to report crypto transactions from 2023. However, congressmen said the proposed regulations have yet to be published.
Lawmakers Request Publishing of Proposed Regulations
Sherman and Lynch called for the immediate publication of proposed regulations to close the tax gap and bring the cryptocurrency industry to full tax compliance.
In May, the Biden administration imposed 30 percent for cryptocurrency miners, first announced in March 2023 as part of Biden’s FY2024 budget. Digital Asset Mining Energy (DAME) renewed its edition for tax. However, the proposed crypto mining tax did not fall under the May legislation addressing the raising of the US debt ceiling.
While concerns about the 30 percent tax on crypto mining have subsided, crypto advocates believe this is a temporary regulation. CoinMetricsco-founder Nick Carter, believes the administration will try again to tax some bag laws in the future.
