The flagship crypto, Bitcoin drifted lower after nearing $42,000, to trade at around $39,712 at the time of this report, still Bitcoin is up 6.12% for the day.
The U.S. Treasury has introduce a proposal to strengthen tax compliance in that world’s largest economy, which includes businesses reporting crypto transfers worth at least $10,000 to the United States Internal Revenue Service.
As with cash transactions, businesses that receive crypto assets with a fair market value of more than $10,000 would also be reported on,” the Treasury Department said in a report on tax-enforcement proposals released Thursday,
While involvement by the Treasury Department and the SEC may ultimately prove a boon for cryptocurrency investors, any near-term regulatory hurdles will likely come as another bother for investors in bitcoin, dogecoin and the like.
Recall that the tax agency some years ago, added a line about crypto assets on Form 1040, the individual tax return, in an effort to gain more exposure into cryptocurrency transactions.
Despite constituting a relatively small portion of business income today, cryptocurrency transactions are likely to rise in importance in the next decade, especially in the presence of a broad-based financial account reporting regime,”
In November, the Financial Crimes Enforcement Network (FinCEN) proposed lowering the threshold at which banks must collect and store fund trans information, reducing it from $3,000 to $250 for any transfers – crypto or fiat – that go outside the U.S.
According to the Treasury’s estimates, the difference between taxes owed to the U.S. government and those actually paid totaled nearly $600 billion in 2019.
