The U.S. will lose billions of dollars due to crypto-philes
The U.S. Treasury Department is having trouble implementing the Cryptocurrency Tax Fraud Act, which could lead to serious financial losses for the government budget
U.S. Senators, including Elizabeth Warren, are calling on President Joe Biden's administration to take swift action to remedy the situation. They point out that cryptocurrency tax evaders are currently finding ways to circumvent the law, which needs to be addressed. The senators also emphasize that there is a significant $50 billion cryptocurrency tax deficit, and failure to update tax policy could result in the loss of about $1.5 billion in tax revenue in fiscal year 2024.
In their address, the senators state: "If we don't act, tax evaders and crypto intermediaries will continue to exploit the system, exploit loopholes, and extract billions of dollars from the U.S. government. We must not give them that opportunity." The politicians were referring to new tax laws in the $1.2 trillion infrastructure bill passed in August 2021. That bill aims to tighten tax reporting requirements for businesses operating as cryptocurrency brokers. The senators noted that it has been almost two years since the law was passed and less than six months away from implementation, but the Treasury Department has yet to publish proposed regulations. Several members of the U.S. Congress have also urged the authorities to speed up the process of imposing taxes on cryptocurrency. Congressmen Brad Sherman and Stephen Lynch addressed the Treasury Department and the IRS, recalling a bill proposed by Biden in November 2021 that would require US citizens to report crypto transactions starting in 2023.
According to politicians, these provisions have not yet been adopted. Note that according to Divly, only 1.62% of US residents, the country with the largest number of cryptocurrency users, declared their assets.