Home
News
- Administration plans to share data with foreign governments
- cryptocurrency tax-evasion push to get a renewed push
The U.S. administration under Joe Biden is introducing sweeping measures to tackle tax evasion. It also wants to solicit international cooperation and is collecting information about foreign cryptocurrency investors active in the U.S.
Fresh revenue proposals outlined in Green Book
The Treasury Department has released revenue proposals in its Green Book and has outlined the steps to bring the cryptocurrency under some form of regulation. It proposed exchanges and hosted-wallet providers to provide information to the IRS on overseas clients indirectly holding accounts.
The Green Book is an official document with guidelines on choices and evaluation regarding public spending, taxations, changes in rules and regulations about the use of existing public assets and resources.
Proposals will help invisible foreign players and owners
The highly decentralized nature of cryptocurrency makes monitoring impossible, and there are many behind curtain players who could be foreign owners. In present circumstances, it is not possible to identify these foreign owners. According to Jorge Castro, the latest proposals will make that possible, a tax attorney at Miller & Chevalier Chartered. Jorge had earlier worked at
IRS and is also a Democratic tax counsel on Capitol Hill
The proposal will enable the U.S. to provide information to overseas nations. It will also receive information from these nations about U.S. nationals hiding cryptocurrency assets and avoiding U.S. Tax liabilities using exchanges and wallet providers in these overseas countries.
The renewed measures to broaden the tax net are seen to help pay trillions of dollars to rebuild the economy after the covid epidemic. The proposals will need congressional legislation and align with the Treasury’s engagement with regulatory authorities across the globe to hammer out an agreement on a global minimum tax for corporations.
Increasing Concerns
The growing tax gap or the difference between taxes owed and tax paid is blamed on cryptocurrencies. According to Charles Rettig, Internal Revenue Service Commissioner, this figure could exceed a mind-boggling 1 trillion dollars per year. Another factor that weighs heavily against cryptocurrencies is cybersecurity. The latest hard look at cryptocurrency trade is also seen as a part of tackling cyber attacks.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
