U.S. Congressmen Brad Sherman and Stephen Lynch have written to the heads of the Treasury Department and the Internal Revenue Service (IRS) calling for tax regulations on the crypto industry, with Sherman and Lynch noting that “for many years, the (crypto) industry has been a major source of tax evasion and an important component of the nation’s (U.S.) tax gap.” The two highlighted a September 2020 audit report in which the U.S. Treasury Department’s Inspector General for Taxation noted that the IRS was unable to identify taxpayers supporting cryptocurrencies due to a lack of reporting.
In addition, the Infrastructure Investment and Jobs Act, signed into law by Biden in November 2021, requires taxpayers to report cryptocurrency transactions starting in 2023. However, lawmakers said the proposed regulations have not yet been enacted. Halfway through 2023, Sherman and Lynch called for the immediate release of proposed regulations to "close the tax gap and bring the cryptocurrency industry into full compliance with tax regulations." (Cointelegraph)
