US Lawmakers Planning To Reintroduce Crypto Reporting
A group of U.S. lawmakers is reportedly aiming to reintroduce a bill. Proposing clearer guidelines for Crypto Reporting requirements, according to a report by CNBC. The proposed bill is known as the Virtual Currency Tax Fairness Act. It would exempt transactions valued under $600 from taxation.
A move ostensibly designed to encourage wider adoption of cryptocurrencies. The proposed rules would exclude transactions resulting in a gain or loss of less than $600 from capital gains taxes. This could reduce the compliance burden for many cryptocurrency users. Who has found the current tax reporting system confusing and inconsistent?
The bill was originally introduced in 2017 but didn’t pass through Congress. It’s being brought back due to the increasing popularity of cryptocurrencies, like Bitcoin and Ethereum, and growing interest in their potential tax treatment.
The tax code is notoriously fuzzy on how precisely cryptocurrencies should be taxed, with different interpretations scattered throughout, not only in official documents but also among tax professionals. As a result, much ambiguity exists around the question of how much investors owe the Internal Revenue Service (IRS) on crypto assets.
Senators have been working on ways to flesh out this regulatory gray area for years. With some submitting legislation in late 2019. The new bill reportedly builds on that work, promising clearer guidelines for individuals operating in cryptocurrency. Drastically improve compliance, according to a spokesperson for Rep. Jared Polis (D-Colo.), one of the bill’s primary sponsors.
The bill’s reintroduction comes just weeks after the IRS revealed that it would convene a summit in March 2021 with cryptocurrency stakeholders to discuss some of the ongoing tax compliance challenges. Focus on finding solutions to some of these issues.
The legislation’s success remains uncertain, particularly given the heightening partisanship in Congress. However, with an increasing number of fintech companies and other businesses. Investing in the digital asset space, the push for a clear structure around crypto tax guidelines. May well gain speed in the coming months.
Rep. Patrick McHenry and Rep. Richie Torres are reportedly planning to reintroduce the Keep Innovations in America Act to meet the reporting requirements of the Infrastructure Act.
A group of U.S. lawmakers is reportedly planning to reintroduce legislation changing reporting requirements for certain taxpayers involved in crypto transactions.