Internal Revenue Service Strengthens Oversight Of Cryptocurrencies

The Internal Revenue Service (IRS) has requested an increase in funding to strengthen oversight in the cryptosphere.

According to the head of the IRS Rettig, the agency needs the authority to track all transfers in cryptocurrency in the amount of 10 thousand dollars or more.

The IRS expects an increase in the budget for 2022 to expand tax administration capabilities in the field of cryptocurrencies and fight cybercrime, writes forklog.

The capitalization of the crypto market has increased to $ 2 trillion, while the cryptocurrencies themselves are arranged in such a way as to remain out of sight, Rettig said.

The IRS plans to create a complete internal cryptocurrency blockchain dashboard.

In addition, it is proposed to impose obligations on crypto brokers and crypto exchanges to disclose information about their clients. In tax form 1040 there will be clauses related to cryptocurrencies, which will simplify control over taxes in this area.

Under Rettig, the IRS launched an activity to collect information about users of crypto exchanges who may evade taxes. In April, it became known that the department was looking for a company that would provide it with the tools to crack hardware crypto wallets.

In a previously published green paper, the Biden administration made it clear that efforts to tax cryptocurrencies are aimed at narrowing the so-called tax gap.

According to the IRS, the lost taxes by the US government in recent years could increase to $ 1 trillion a year thanks to the emergence of new sources of income, including cryptocurrencies.

Meanwhile, Commissioner of the US Securities and Exchange Commission (SEC) Hester Pierce said in an interview with the Financial Times that too strict regulation of cryptocurrencies could harm financial innovation.

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