White House: US digital currency tax enforcement will pay for new infrastructure

Enforcement of the digital currency tax in the United States will help pay for infrastructure under a new bipartisan deal, according to comments emanating from the White House.

The Senate bill, which has taken a number of months to get to its current stage, is to be funded in part by increased enforcement activity against digital currency transactions, which will help offset some of the costs involved in the multi-billion-dollar package.

The bill was reported to have been hashed out during an often-intensive debate between Republican and Democratic lawmakers, with text not yet available on the ins and outs of the package. However, a fact sheet published by the White House identified digital currency tax enforcement as one of a number of strategies for offsetting the costs of the project.

The White House fact sheet said stronger enforcement of digital currency taxes would provide revenue that could be targeted to help fund the package.

“In the years ahead, the deal will generate significant economic benefits. It is financed through a combination of redirecting unspent emergency relief funds, targeted corporate user fees, strengthening tax enforcement when it comes to crypto currencies, and other bipartisan measures, in addition to the revenue generated from higher economic growth as a result of the investments.”

According to separate documentation leaked to the press, the framework will impose new reporting requirements to the IRS, in order to secure the revenue stream.

“The bipartisan infrastructure framework applies information reporting requirements to digital assets (including cryptocurrency) to ensure they are properly reported to the IRS. The provision includes updating the definition of broker to reflect the realities of how digital assets are acquired and traded. The provision further makes clear that broker-to-broker reporting applies to all transfers of covered securities within the meaning of section 6045(g)(3), including digital assets.”

“Additionally, digital assets are added to the current rules requiring businesses to report cash payments over $10,000.”

Watch: CoinGeek Zurich panel, Triple Entry Accounting on Blockchain

Source: Read Full Article