U.S. Treasury and Internal Revenue Service Publish New Proposed Crypto Tax Regulations
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) are jointly proposing new tax regulations for the digital assets industry. In a new publication, the Treasury and the IRS are proposing that payment platforms, wallet providers and trading firms that deal with crypto assets file tax returns on certain sales or exchange transactions. The proposal also asks real estate brokers to file tax information on virtual currencies received during transactions. According to a press release by the Treasury Department, the proposed rules, if enacted, would apply to sales and exchanges of crypto assets in 2025 and are estimated to generate about $28 billion worth of revenue for the federal government over a 10-year period. The proposed rules were met with criticism by Republican Representative Patrick McHenry of North Carolina, the Chairman of the House Financial Services Committee. According to McHenry, the proposal is just another way for the Biden Administration to crack down on the crypto industry.