The US Treasury Department has moved to impose tighter regulations on cryptocurrency-transactions – claiming that they present tax evasion risks.
“Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” a statement from the Treasury contained.
Rumors have been circulating for a while about the Government’s plan to impose strict guidelines.
In a bid to curb crypto-aided tax evasions.
Henceforth, all cryptocurrency-related transactions above $10,000 must be reported to the IRS.
“This is why the President’s proposal includes additional resources for the IRS to address the growth of cryptoassets,” the department added. “Within the context of the new financial account reporting regime, cryptocurrencies and cryptoasset exchange accounts and payment service accounts that accept cryptocurrencies would be covered. Further, as with cash transactions, businesses that receive cryptoassets with a fair market value of more than $10,000 would also be reported on.” the statement continued.
All these are in line with President Biden’s effort to eradicate tax evasion and improve compliance.
There are also talks to provide more funding and technological support for the IRS.