The measure of the tax-collecting agency applies to transactions with both fiat money and cryptocurrencies. The IRS estimates that it has received USD 600 billion less in taxes than it should have.

In recent days, the US Treasury Department called for the report of transfers to the Internal Revenue Service (IRS). They said that it will be compulsory to pay taxes on transfers, with both fiat money and in cryptocurrencies, of USD 10,000 or more.

The measure, which covers accounts from both exchanges and payment services, primarily seeks to combat tax evasion. Likewise, those companies whose revenue is higher than the aforementioned amount must also report it to the IRS.

The official statement of the Treasury Department shows the concern of this entity about cryptocurrencies. They say that these types of assets “pose a significant detection problem, facilitating illegal activities that include tax evasion.”

“This is why the proposal of the President (Joe Biden) includes additional resources for the IRS to address the growth of crypto assets. Although they currently constitute a small portion of the revenue of the market, transactions with cryptocurrencies could increase in importance in the next decade,” according to the document.

The report also explains that the initiative is part of Joe Biden’s American Families Plan. They state that their financing has demanded complementary measures aimed at taxes. For that reason, they seek to reduce the gap between the taxes that people should pay and those that they actually pay. According to the aforementioned document, the difference is USD 600,000 million. They add that it could rise to USD 7 trillion within the next 10 years if the trend does not experience a correction.

US Government Officials Have Different Positions on Cryptocurrencies

Several US government agencies have turned their attention to Bitcoin and other crypto assets in recent months. Some of them plan to draw up a joint strategy to regulate this sector, even anticipating the measures of 2020 and previous years.

The Office of the Comptroller of the Currency (OCC), the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC) seek to address this issue. One of the priorities of Michael Hsu, the newly appointed director of the OCC, is to review policies that favor cryptocurrencies.

Michael Hsu (from the OCC), Randal Quarles (from the Fed) and Jelena McWilliams (from the FDIC) explained how their agencies are dealing with the regulation of this market.

Regarding these types of innovations, the cryptocurrency community has welcomed Gary Gensler’s appointment as Chairman of the Securities and Exchange Commission (SEC). Gensler has received instruction in new technologies and has highlighted the value of Bitcoin, which he classified as “the modern form of gold.”

In early May, he told CNBC television that the United States is seeking “greater protection” for those who invest in digital assets. At the time, he commented that these regulations would help investors to be sure that no one is manipulating either the market or the public.

By Alexander Salazar

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