The American government is making a new tax push on cryptocurrencies. The United States Treasury released on Thursday (20) a report with new proposals for income tax returns in the country. According to the document, one of the planned changes is to force the disclosure of transactions in excess of US $ 10,000 that involve digital assets. The purpose of the bill is to help contain tax evasion and financial crimes.
The proposed changes are part of a broader plan by the Joe Biden government to “increase revenue, improve efficiency and build a fairer tax system”. If the proposal is approved, American citizens and companies will have to report their transactions with digital currencies to the Internal Revenue Service (IRS).
Plan wants to inhibit tax avoidance with cryptocurrencies
“Cryptocurrencies already pose a significant detection problem by widely facilitating illegal activity, including tax evasion,” says the US Treasury report. “That’s why the president’s proposal includes additional resources for the IRS to handle the growth of digital assets.”
Biden’s “Plan for American Families” is a $ 80 billion project that aims to increase the ability of the IRS to conduct tax inspections and aims to generate up to $ 700 billion over the next decade. Cryptocurrencies became a target after the U.S. Treasury concluded that digital assets are likely to become increasingly relevant to corporate revenue in the future.
“Within the context of the new financial reporting regime, cryptocurrency and crypto exchanges and related payment services will also be included,” the document said. “In addition, as with cash transactions, companies that receive digital assets worth more than $ 10,000 should also declare the move.”
The US Treasury report concludes that these comprehensive measures are necessary to minimize incentives and opportunities to transfer funds without reporting the transaction to the IRS. Once the authorities increase their capacity to record financial transactions, it becomes possible to apply the appropriate taxes and prevent fraud.
Fed suggests more regulations
Federal Reserve (Fed) President Jerome Powell said in a video message published on Thursday that cryptocurrencies pose some risks to individual investors and the financial system in general. He also pointed out the danger of such volatility seen recently in digital assets.
Powell suggested that more regulations and taxes on cryptocurrencies may be in the pipeline. For him, the increase in the use of stablecoins (stable digital currencies and backed by fiat money) deserves the attention of the Federal Reserve and the US Treasury, noting that currently companies offer alternatives to digital payments with them without the appropriate rules.
“As the use of stablecoins grows, so should our attention to the appropriate regulatory and supervisory framework,” said Powell. He noted that the Fed is exploring whether cryptocurrencies could improve the current US financial system and how.
Fed to publish document on possible CBDC
In addition, the possibility of a cryptocurrency linked to the American central bank (CBDC) was also pointed out. Powell revealed that the Fed is expected to publish a document on the benefits and risks of establishing a state digital currency in the coming months. The government then conducted a public opinion poll on the matter.
“We think it is important that any possible CBDC can serve as a complement, rather than a substitute, to today’s digital money and forms of the dollar, such as deposits in private banks,” added Powell.
With information: CNET, New York Post