US Treasury wants more than $ 10,000 in cryptocurrency transfers reported to IRS Crypto News

The Biden administration’s proposal to catch tax traders is expanding into the world of cryptocurrency, which saw the U.S. Internal Revenue Service add a line on cryptography to its individual tax return in 2020.

The U.S. Treasury said the Biden administration’s proposal to strengthen tax compliance includes a requirement to notify at least $ 10,000 in cryptocurrency transfers to the Internal Revenue Service.

“As with cash transactions, businesses that receive cryptocurrencies with a market value of more than $ 10,000 would also be notified,” the Treasury Department said in a report on tax enforcement proposals released Thursday.

The Treasury said a comprehensive report was needed to “reduce incentives and opportunities outside the new revenue reporting regime”. He noted that cryptocurrency is a small part of current business transactions.

Bitcoin bounced back on Wednesday’s exit in the IRS announcement as it cut about $ 3,000 from the token price. In New York, as of 12:33 p.m., it was about 3% more expensive at about $ 39,000. Stocks related to cryptocurrencies like Coinbase and MicroStrategy also reversed gains.

The IRS added a line on cryptocurrency in 2020 on Form 1040, an individual declaration, in an effort to achieve greater visibility in virtual currency transactions.

President Joe Biden’s administration also requires banks to report account flows to help encourage compliance with tax payments.

“Cryptocurrencies are already causing a major detection problem by facilitating illegal activity including tax evasion,” the Treasury said.