Breaking: Lawmakers Demand Swift Release of Crypto Tax Rules

Reps. Brad Sherman (D-Calif) and Stephen Lynch (D-Mass) have urged the U.S. Treasury Department and Internal Revenue Service (IRS) to expedite the release of anticipated cryptocurrency tax regulations. The lawmakers stressed the importance of bringing the industry into full compliance in a letter sent on Monday.

In an accompanying press release, Sherman, a senior member of the House Committee on Financial Services, highlighted the cryptocurrency industry's long-standing role in tax evasion and its significant contribution to the nation's tax gap.

The letter pointed out that although the White House had completed its review of the tax reporting requirements for crypto brokers outlined in the 2021 infrastructure bill in February, the proposed regulations have yet to be published. The key point of contention was the broad definition of "broker," which raised concerns about the inclusion of miners and crypto wallet providers who may struggle to comply with such a rule.

In April, IRS official Julie Foerster acknowledged the need to update and clarify the guidance but could not provide a specific timeline. She also mentioned the agency's exploration of alternative means to engage with the industry, enabling taxpayers to voluntarily fulfill the reporting requirements.

In their letter, the lawmakers expressed frustration that the crypto industry had the entirety of 2022 to prepare for the forthcoming regulations but now seems to have an additional year, 2023, without their implementation.

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