- Politicians published an open letter
- And accused agencies of procrastination
- Crypto-tax defaults create a big hole in the U.S. budget
Members of Congress Brad Sherman and Stephen Lynch wrote a public letter to Treasury and the Internal Revenue Service (IRS). They complain about the tax gap for the crypto industry. And demand new rules.
So, the letter is addressed to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel. It begins with the traditional accusation that cryptography helps citizens evade taxes. As a result, the U.S. budget is missing out on huge revenue:
“For years, the crypto industry has been a major source of tax evasion and a significant part of the national (U.S.) tax deficit.”
Congressmen cite the Treasury’s 2020 Tax Administration Report (TIGTA). In it, the agency states the IRS’ inability to figure out taxpayers who use cryptocurrencies due to lack of reporting.
Sherman and Lynch also recalled Joe Biden’s November 2021 bill. It requires Americans to report crypto-transactions starting in 2023. But, according to congressmen, “the proposed rules have not yet been adopted or made public.”
The authors concluded by urging the Treasury Department to expedite the release of proposed rules that would “close the tax gap and bring the cryptocurrency industry into full compliance.”</p