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 common intention of the U.S. Treasury Department is 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.

Treasury talk

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 points out that although cryptocurrencies account for only a small percentage of current commercial transactions, this comprehensive report is useful for maximizing It is necessary to reduce the motivation and opportunities to transfer income from the new information reporting system.

Interestingly, the report specifically mentions cash and cryptocurrencies as viable shields for tax avoidance. Specifically, the report even described cryptocurrencies 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 8300, Requires individuals, companies, corporations, partnerships, trusts, real estate, etc. to report cash payments exceeding $10,000.

Related Reading| Eliminate the FUD that caused Bitcoin to crash this week

Continued investment in broader crypto has the federal government paying attention | Source: CRYPTOCAP - TOTAL on TradingView.com

Federal Flutter

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. The President of the Federal Reserve Bank of St. Louis, James Burrard and the President of the Federal Reserve Bank of Atlanta, Rafael Bostic, both pointed out that the volatility of cryptocurrencies is a well-known feature. Bostic added that cryptocurrencies are not “I really fit into the scope of my policy thinking.”.

In public discussions, the United States is not alone. The Central Bank of Norway has expressed concern that the fluctuation of cryptocurrencies may affect its banking system. Of course, China’s potential hard stance on cryptocurrencies (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 U.S. institutions have all 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.

Related Reading| The money management company said that the chief financial officer avoids risks and Bitcoin will not become a tool of the company

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