Senator Elizabeth Warren has called on the US government to reconsider its decision to impose a two-year delay on the implementation of crypto tax rules in the country. In a letter addressed to US Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, Senator Warren expressed concerns about the delay’s impact on tax revenue and urged swift action.
Delay Raises Concerns
In her letter, Senator Warren expressed concerns about the two-year delay in implementing the crypto tax rules, stating that it contradicts the requirements of the bipartisan Infrastructure Investment and Jobs Act. She believes the delay will put law-abiding Americans at a disadvantage and result in the US government missing out on billions of dollars in revenue.
Senator Warren cited data indicating a lack of understanding among US citizens about how crypto taxes work. This lack of awareness has contributed to the IRS missing out on billions of dollars in tax revenue from the crypto industry.
Clear Definition of Digital Asset
Despite her concerns about the delay, Senator Warren praised the US government for its clear definition of a digital asset. She believes this definition provides flexibility, considering the rapidly changing nature of the crypto industry.
Request for an Update
Senator Warren requested an update on the matter from Janet Yellen and Daniel Werfel by October 24th. The request follows the release of proposed regulations by the US Department of Treasury and the IRS, which target the sale and exchange of digital assets by brokers.
Key Emphasis on Tax Evasion
The proposed regulations emphasize the federal government’s ability to combat tax evasion by investors on their crypto profits. If enacted, digital asset brokers would face stringent reporting obligations to the authorities. This move aims to bring tax reporting on crypto profits more in line with traditional investments.
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Conclusion
Senator Elizabeth Warren’s call to expedite the implementation of crypto tax rules highlights the importance of regulating the crypto industry and ensuring proper taxation. The delay in implementing these rules raises concerns about lost tax revenue and the disadvantage it places on law-abiding taxpayers. With the proposed regulations, the US government aims to combat tax evasion in the crypto space and bring it in line with traditional financial reporting.
