The US government is delaying its decision to collect billions in crypto taxes as authorities delay data collection. Biden’s administration is delaying its decision to collect detailed information about client trading data from crypto brokers and exchanges.
According to a Bloomberg report, the Internal Revenue Service and the Treasury Department likely pushed the record-keeping date to January, according to details provided by those familiar with the matter. The data to be collected includes gains and losses of the customers. The names are being kept hidden because the decision is not yet final. With the change, the tax authorities would have to wait longer to obtain the same information as for stocks or bonds.
Crypto tax evasion is a big problem everywhere
Crypto tax evasion is not only an issue facing United States policy makers, but a major one facing governments across the country. The lack of well-defined crypto and tax collection regulations is causing problems for policymakers around the world.
Treasury and the IRS have been fighting to quickly create rules that companies will use to collect and disclose data about their customers’ transactions.
In November last year, Congress passed a law requiring crypto companies to maintain a list of detailed customer transactions by 2023. The reports would also be sent to the IRS the following year.
The crypto industry is complaining about the crypto legislation that is widely drafted. The IRS and the Treasury both declined to comment on the possible robbery. Officials have already postponed start dates for information reporting laws in other sectors, despite the fact that their cryptocurrency efforts are still relatively new.
Once the rules are in effect, the brokers and exchanges must send detailed information about client transactions to the IRS, which will be used to file the respective users’ crypto tax returns. The data will also aid in helping authorities catch crypto tax evaders.
“It can be very helpful to standardize reporting and put it in a way that makes it easier to digest and file tax returns.”
Michael Desmond, former chief adviser to the IRS