Warren and other senators claimed that the move is necessary right away because crypto tax evaders steal billions of dollars every year. The regulations seek to close a financial gap by requiring much more extensive crypto tax reporting.
Crackdown the Crypto Tax Evaders!
Elizabeth Warren, Bob Casey, Richard Blumenthal, and Bernie Sanders are proposing for tougher reporting requirements. The infrastructure package that was enacted in August already contained the proposed regulations, but lawmakers want the agencies to issue and implement them more quickly. On Tuesday, they are signing a letter that alerts the leaders of the two agencies that the window of opportunity for establishing proposed rules is closing.
“Treasury has yet to publish proposed rules, despite the fact that the implementation deadline is less than six months away and nearly two years have passed since the law was passed,” the letter stated. The IRS and the Treasury have been pushed by senators who lean left to publish tax reporting guidelines for crypto tax evaders and then strictly enforce them.
Billions of Dollars Go Missing
The reform, according to Warren and the other senators, is necessary immediately because cryptocurrency users who avoid paying taxes steal billions of dollars every year. In order to close a financial gap, the guidelines seek to make crypto tax reporting much more detailed. The amount may be much greater, according to research, but crypto tax evaders are allegedly defrauding the IRS of at least $50 billion a year.
Senators said that “Given the chance, crypto tax evaders and the crypto intermediaries willing to assist them will continue to game the system, exploit loopholes, and siphon off billions of dollars a year from the U.S. government.”