The US budget will lose billions of dollars due to taxes on cryptocurrency
Date: 2023-08-04 Author: Karina Ziganova Categories: CRYPTO PAYMENTS, IN WORLD
The implementation of the law on fraud with taxes on cryptocurrency is delayed in the US Treasury, which can lead to the loss of billions of dollars in the state budget. This is stated in the letter of the US senators.
In this regard, Senator Elizabeth Warren and three other senators are calling on the administration of US President Joe Biden to act quickly. They note that now tax evaders are using loopholes that must be eliminated.
Senators say there is a “$50 billion cryptocurrency tax shortfall,” and the U.S. Internal Revenue Service (IRS) and Treasury risk missing out on roughly $1.5 billion in tax revenue for FY2024 if the tax policy update is delayed.
"If given the chance, tax evaders and crypto brokers willing to help them will continue to game the system, use loopholes, and siphon off billions of dollars an hour from the US government. You should not give them such a chance," says the senators' address.
Politicians cited the new tax laws contained in the $1.2 trillion Senate infrastructure bill passed in August 2021. The draft law is aimed at tightening tax reporting requirements for enterprises acting as crypto brokers.
"Almost two years have passed since the adoption of the law, and less than six months remain until its implementation, but the Ministry of Finance has not yet published the proposed rules," the senators noted.
Several members of the US Congress have already called on the US authorities to speed up cryptotaxes. Congressmen Brad Sherman and Stephen Lynch appealed to the Treasury Department and the IRS. They recalled the same bill proposed by Biden in November 2021, which requires American citizens to report crypto-transactions starting in 2023. According to politicians, these provisions have not yet been adopted.
At the same time, according to Divly, taxes from cryptocurrency are paid by approximately 0.03% to 4.09% of residents of different countries. In particular, in the USA, where the largest number of cryptocurrency users, only 1.62% declared their assets.
