A report published yesterday by the US Department of the Treasury called “The American Families Plan Tax Compliance Agenda” revealed the tax measures proposed by President Joe Biden.
The report mentions that “The President’s proposal requires information reporting on financial accounts to increase the visibility of gross receipts and expenses to the IRS,” and that “The reporting regime would also cover foreign financial institutions and crypto-asset exchanges and custodians.”
Furthermore, the report mentions that “another significant concern is virtual currencies, which have grown to $2 trillion in market capitalization” and that “cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion.”
“This is why the President’s proposal includes additional resources for the IRS to address the growth of crypto assets,” is mentioned in the report of the Treasury. “Despite constituting a relatively small portion of business income today, cryptocurrency transactions are likely to rise in importance in the next decade, especially in the presence of a broad-based financial account reporting regime.”
The Treasury also mentions that “Within the context of the new financial account reporting regime, cryptocurrencies and crypto asset exchange accounts and payment service accounts that accept cryptocurrencies would be covered,” and that “As with cash transactions, businesses that receive crypto assets with a fair market value of more than $10,000 would also be reported on.”