U.S. Treasury Department requires IRS to report crypto transfers of more than $10,000
The politics surrounding cryptocurrency has been buzzing recently, and today is no exception.In the preliminary report from Bloomberg This morning, the U.S. Treasury Department has reached a common intention to require companies and possible individuals to also transfer cryptocurrencies of $10,000 and above in order to report transactions to the IRS. This move is part of a broader plan developed by the Biden administration to strengthen tax compliance.
This information comes from the title “U.S. Family Plan Tax Compliance Agenda‘. “Like cash transactions, companies that receive crypto assets with a fair market value of more than US$10,000 will also be reported. The report pointed out that although cryptocurrencies account for a small proportion of current business transactions, this type of comprehensive report is useful for minimizing revenue Motivations and opportunities transferred from the new information reporting system are necessary.
Interestingly, the report specifically mentions cash and cryptocurrencies as viable shields for tax avoidance. Specifically, the report even described cryptocurrency as “a major detection problem that is posed by the widespread promotion of illegal activities, including tax evasion.” The report continues to acknowledge that encrypted transactions “may become more and more important in the next decade.”
The report may be related to US Internal Revenue Service (IRS) Form 8300This requires individuals, companies, corporations, partnerships, trusts, real estate, etc. to report cash payments in excess of $10,000.
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Continued investment in broader crypto has the federal government paying attention | Source: CRYPTOCAP - TOTAL on TradingView.com
The U.S. government is commenting more and more on the public. The Treasury Department’s comments appear to be inconsistent with broader information. Before today’s report, two Fed policymakers stated earlier this week that cryptocurrencies have no “systematic economic influence” on the Fed. St. Louis Federal Reserve Bank President James Brad and Atlanta Federal Reserve Bank President Rafael Bostik both pointed out that the volatility of cryptocurrencies is a well-known feature. Bostik added that cryptocurrencies are not “I really integrate into my way of thinking about policies.”.
In public discussions, the United States is not alone. The Norwegian Central Bank expressed concern that the volatility of cryptocurrency may affect its banking system. Of course, China’s potential hard stance on cryptocurrency, especially the mining industry, has always been a topic in this field.
Of course, global institutions also have various opinions. Wells Fargo and other major US institutions have begun to invest in crypto, but Bank of Canada recently stated that the volatility of cryptocurrency assets is an emerging vulnerability in the country’s financial system.
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