In a letter to the directors of the Treasury and the Internal Revenue Service, two members of the US Congress demand the execution of tax laws for the cryptocurrency sector.U.S. Representatives Brad Sherman and Stephen Lynch expressed worry about the compliance procedures in crypto in a letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, stating,”That (crypto) industry has been a major source of tax evasion and a sizable contributor to the country’s (United States) tax gap for years now.”In a study dated September 2020, the Treasury Inspector General for Tax Administration noted that the IRS was unable to identify pro-crypto taxpayers as a result of the absence of reporting. The pair emphasized this report.
Additionally, beginning in 2023, taxpayers were compelled to record cryptocurrency transactions under the Infrastructure Investment and Jobs Act (Bipartisan Infrastructure Bill), which was enacted by President Joe Biden in November 2021.The congressmen asserted, however, that “the proposed regulations have yet to be promulgated.”Sherman and Lynch demanded that the new regulations be published as soon as possible in order to “close the tax gap and bring the cryptocurrency industry into full tax compliance.”The Biden administration redoubled its efforts in May to enact the 30% Digital Asset Mining Energy (DAME) tax on cryptocurrency miners that was first proposed in March 2023 as a part of Biden’s FY2024 budget.The legislation passed in May to raise the U.S. debt ceiling, however, did not include the planned tax on cryptocurrency mining.
Crypto enthusiasts believe that the 30% tax on cryptocurrency mining is only a temporary solution, despite the fact that concerns about it have subsided. Nic Carter, co-founder of CoinMetrics, predicts that the government will try to re-incorporate the tax into an omnibus measure in the future.Regarding its intentions to pursue the DAME tax, the White House has not yet provided any statement in response to Cointelegraph’s inquiry.