The head of the US Internal Revenue Service, Charles Rettig, said the US Congress should give tax officials legal authority to collect information about cryptocurrency transfers.
Rettig recalled that the cryptocurrency market capitalization has already exceeded $ 2 trillion, there are more than 8,600 cryptocurrency exchanges around the world, and “most cryptocurrencies are designed to stay out of sight.”
The administration of the current president drew attention to the crypto asset market as a source of taxes and as part of the fight against the use of cryptocurrencies by cybercriminals.
The administration’s proposals include requiring the tax authorities to report cryptocurrency transfers of $ 10,000 or more, much in the same way that banks report remittances and brokers report securities transactions.
According to Rettig, the huge profits generated by the rise in the value of crypto assets elude the tax authorities, creating a “tax gap” – the difference between taxes that could be collected and those actually collected. Rettig estimates that this is about $ 1 trillion a year.
Earlier, the Treasury proposed to reduce the reporting limit on remittances from the current $ 10,000 to $ 600. Rettig said he did not support the proposal, but suggested that its adoption would help determine which taxpayers should not be audited so that the agency could focus on wealthier individuals who are more prone to tax evasion.