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- Efforts to include Cryptocurrency transactions above $10,000
- Need felt to bring cryptocurrency under some form of regulation
- Help preempt tax evasion, prevent money laundering and other illicit activities
On Thursday, the Treasury Department stated that it plans to raise $700 billion to fuel the ambitious American Families Plan by bold new tax enforcement measures. It will also include regulating the booming crypto market.
US President American Families Plan
In Its Latest Report on Thursday, the US Department of the Treasury emphasized putting in place measures that would increase compliance and create a tax system where Americans pay their taxes honestly. According to the Treasury Department, the latest efforts are in line with raising money for US President Proposals in the American Families Plan. The plan aims to increase investments in American children and families.
The report also added that it seeks to close the tax gap, which stood at a whopping $600 billion in 2019. It is expected to rise to about $7 trillion over the next decade. The tax gap meant the deficit between taxes owed to the government and taxes paid.
Filing details compulsory for any transactions of cryptocurrency worth more than $10,000
The plan also envisages a new set of rules that will require banks and financial institutions to report information about money transactions both in and out to the Internal Revenue Service. It will also include Cryptocurrencies, crypto-asset exchanges and custodians, and crypto payment services. Any business that receives cryptocurrency worth more than $10,000 should file a transaction report like reporting cash payments of more than $10,000.
The Treasury Department added it is necessary to bring cryptocurrency under regulation. This would sniff out tax evasion and prevent money laundering and other illicit activities. The Treasury Department also added that cryptocurrency forms a small part of business income today. However, the scope and the volume of cryptocurrency are bound to increase in the coming years. Hence the need for a broad-based financial account reporting regime.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
