The Treasury Department and the Internal Revenue Service (IRS) have been urged by seven U.S. senators to "implement the proposed crypto broker reporting rule as rapidly as possible." The legislators emphasized that "We are alarmed by the self-inflicted two-year delay for the rule's implementation."
Senators want the crypto tax reporting rule to be put into place quickly.
On October 10, the senators Brian Schatz, Angus King, Richard Blumenthal, Gary Peters, Bernie Sanders, Sheldon Whitehouse, and Elizabeth Warren issued a letter to Treasury Secretary Janet Yellen and Commissioner of the Internal Revenue Service (IRS) Daniel Werfel on the taxation of cryptocurrencies. The letter begins, "We write regarding the recent proposed rule regarding tax reporting requirements for crypto brokers from the Treasury Department and Internal Revenue Service (IRS)."
The lawmakers said: "We are alarmed by the self-imposed two-year delay for the rule's implementation, which would contravene the bipartisan Infrastructure Investment and Jobs Act requirements, disadvantage law-abiding Americans, and cause the federal government to lose out on billions in tax revenue."
The final rule should be implemented as soon as feasible, and we implore your agencies to keep the rule's core provisions intact in the face of industry criticism.
The reporting regulation mandates that brokers "provide crypto users with the information they need to file their taxes through a modified 1099 form" and "provide the IRS with income information from crypto trades so that would-be tax avoiders are easier to track down," the senators said. The letter further specifies that "brokers" are defined in the rule as "any party that facilitates crypto sales while in a position to know the identity of the seller and the nature of the transaction."
The congressmen stated, "Limiting any further delay in the implementation of the Administration's proposed rule would combat industry efforts to evade regulation, provide clarity to law-abiding taxpayers, and generate billions in tax revenue from a chronically tax-avoidant industry," adding:
In light of this, we ask that the Treasury Department and IRS implement the proposed crypto broker reporting rule as soon as feasible, and that you give us an update on your progress by October 24, 2023.
What do you think about the senators' request to the IRS and Treasury to quickly implement the new crypto tax reporting rule? Comment below with your thoughts and let us know.