Seven members of the United States Senate believe that waiting until 2026 for the proposed cryptocurrency tax reporting requirements by the Treasury Department and the Internal Revenue Service (IRS) is a mistake. In a letter they wrote to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel on October 10th, these senators continued to heavily criticize the two-year delay in implementing these rules.
Could Result in a $50 Billion Loss
They argued that this delay could result in approximately a $50 billion loss in annual tax revenue for the IRS and also allow malicious users to evade paying taxes.
“Crypto is a not-so-secret financial weapon.”Elizabeth Warren
Crypto is the not-so-secret financial weapon funding terrorist organizations like Hamas, Chinese fentanyl networks and North Korea’s missile program. https://t.co/WDDzYzGJfG— Elizabeth Warren (@SenWarren) October 11, 2023
Tax Evasion in the Crypto Market Will Be Prevented
Additionally, the new cryptocurrency tax reporting requirements also mandate that crypto brokers adhere to specific tax reporting standards. These requirements aim to make taxpayers report their cryptocurrency asset transactions more transparently and prevent tax evasion in the cryptocurrency market.
Finally, the senators believe that waiting until 2026 for these rules is risky and could lead to further revenue losses for the IRS or the escape of malicious actors. Therefore, they advocate for the expedited implementation of cryptocurrency tax reporting requirements.