The IRS wants Congress to show initiative on setting cryptocurrency tax regulations
By Bob Garcia
The tax agency says its hands are tied with crypto taxation until Congress intervenes
The hard work that the Internal Revenue Service (IRS) has been maintaining with cryptocurrency tax issues is starting to reach its limit. Because of this, the head of the agency, Charles Rettig, has called for lawmakers to be able to lend their support and start taking the initiative to address this problem found in many of the country’s residents. During a Senate hearing on the IRS’s fiscal year 2022 budget held yesterday, Rettig said that a “clear mandate from Congress” to regulate cryptocurrencies needs to be promptly assigned to the agency.
To date, the IRS has made every effort to combat this issue, including $32 million in its budget for “cryptocurrency-related enforcement operations,” as well as a total of $41 million related to cybercrime that has been needed to address the problem of underreporting by taxpayers. “The authority for us to collect that information is critical,” Rettig said. “The most recent market capitalization in that world, in the crypto world, exceeded $2 trillion and more than 8,600 exchanges worldwide, and by design, most crypto virtual currencies are designed to stay off the radar screen, so we will be challenged.”
Ohio Senator Rob Portman had said a couple of months ago that he intended to initiate a bill that would handle the whole issue, but, as of today, no further movement has been seen. Rettig said that in order to close the tax loophole in the future, the agency plans to focus on the area of “unreported virtual currency” and that it would be helpful if lawmakers could lend a hand in making it a success. The call for help from the IRS seems to be quite remarkable, which makes sense as this seems to be an issue that is starting to spiral out of control as the cryptocurrency boom continues to grow.