The US Treasury said the Biden administration’s proposal to strengthen tax compliance includes a requirement for transfers of at least $ 10,000 of cryptocurrency to be reported to the Internal Revenue Service.
“As with cash transactions, companies that receive cryptoassets with a fair market value of more than $ 10,000 would also be reported,” the Treasury Department said in a report on the proposed application of the law released Thursday.
The Treasury said full reports were needed “to minimize the incentives and opportunities to withdraw revenue from the new reporting regime.” He Noted this cryptocurrency is a small part of current business transactions.
Bitcoin reduced the rebound from the Wedndesay rout following the IRS announcement, which reduced the token price by approximately $ 3,000. It traded up 3% near $ 39,000 at 12:33 p.m. in New York City. Cryptocurrency-related stocks like Coinbase and MicroStrategy also reversed their earnings.
The IRS in 2020 added a line on cryptocurrency on Form 1040, the individual tax return, in an effort to gain more visibility into virtual currency transactions.
President Joe Biden’s administration is also calling on banks to report on account flows to help strengthen tax payment compliance.
“Cryptocurrency already poses a significant detection problem by facilitating illegal activities at large, including tax evasion,” the Treasury said.
(Updates with market reaction to the fourth paragraph.)