Owing to the rapid emergence of “crypto tax evaders” exploits, numerous U.S. legislators have called upon the Internal Revenue Service (IRS) and the Treasury Department to accelerate the process of addressing tax loopholes and taking action regarding new tax regulations.
Democratic Senators Elizabeth Warren, Bernie Sanders, Bob Casey, and Richard Blumenthal emphasized the urgency to IRS and Treasury on new tax regulations in an August 1 letter, citing a “$50 billion crypto tax gap” and a potential $1.5 billion loss in 2024 revenue.
The lawmakers expressed concerns that if “given the chance, tax evaders and the crypto intermediaries willing to aid them will continue to game the system, exploit loopholes, and siphon off billions of dollars a year from the U.S. government. You must not give them that chance.”
The lawmakers are addressing recent tax legislation from the $1.2 trillion infrastructure bill of August 2021. This bill aimed to enhance tax reporting obligations for businesses operating as crypto brokers.
The letter states that despite the fact that the implementation deadline for the law is less than six months away and over two years have passed since it was passed, the Treasury has failed to publish proposed rules.
Although the bill has been officially enacted, the updated tax regulations from the Treasury and the IRS are still pending release. These regulatory bodies have until December 31, 2023, to unveil and enforce the new tax rules. Nonetheless, there is a collective call from legislators to expedite this process.
Elizabeth Warren has emerged as a prominent critic of the cryptocurrency sector within the United States. Her engagement even led to the establishment of what she refers to as an “anti-crypto army,” a focal point of her campaign for re-election to the Senate.
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