The US Treasury has announced that it wants any cryptocurrency transfers over $10,000 to be reported to the US.
Any business in the USA who receives a transfer of more than $10,000 must now report this to the IRS, this is an attempt to bring taxation on cryptocurrencies in line with other currencies. The news was announced as part of President Biden’s US Tax Plan.
This is why the President’s proposal includes additional resources for the IRS to address the growth of cryptoassets. 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. Within the context of the new financial account reporting regime, cryptocurrencies and cryptoasset exchange accounts and payment service accounts that accept cryptocurrencies would be covered. Further, as with cash transactions, businesses that receive cryptoassets with a fair market value of more than $10,000 would also be reported on. Although cryptocurrency is a small share of current business transactions, such comprehensive reporting is necessary to minimize the incentives and opportunity to shift income out of the new information reporting regime.
We wonder what other rules we will be introduced in the future related to cryptocurrency and whether the US government will move to regulate the currencies.