Elizabeth Warren and Democrat Senators Urge IRS for Urgent Action on Crypto Tax Gap
US Senator Elizabeth Warren, along with Senators Bob Casey, Richard Blumenthal, and Bernie Sanders, sent a letter to the US Treasury Department and the IRS expressing concern about the growing tax gap in the crypto industry.
The senators highlighted a current tax gap of $50 billion and warned that without proper regulation on crypto taxes, it could increase to $1.5 billion in 2024.
They pointed out that many individuals are evading taxes on cryptocurrency transactions, and urged the IRS and Treasury to take swift action.
In 2021, Congress passed the Infrastructure Investment and Employment Act, which requires third-party crypto brokers to report transaction information to the IRS.
The deadline for implementing these rules is approaching, yet the Treasury has not published the proposed rules.
The senators emphasized that failure to act promptly may result in significant revenue losses for the government, as tax evaders could take advantage of the current regulatory gaps. They called on the Treasury and IRS to implement the new rules to close the crypto tax gap and prevent further tax evasion.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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