Yellen Wants Every Crypto Transfer Over 10K to be Reported to IRS
Posted on 05/20/2021
In a proposal by the U.S. Treasury, they are looking to have any transfers of at least US$ 10,000 in cryptocurrencies, which includes Bitcoin, Ether, and Dogecoin, to be reported to the Internal Revenue Service (IRS) for tax purposes. “As with cash transactions, businesses that receive crypto assets with a fair-market value of more than $10,000 would also be reported on,” The Treasury Department said. Cash transactions in excess of US$ 10,000 are already subject to IRS reporting requirements.
“Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” the Treasury added in its report.
The Treasury Department detailed plans to have any cryptocurrency transfers of at least $10,000 to be reported to the Internal Revenue Service in a report on Thursday.
The IRS initially asked individuals if they ever bought or sold virtual currencies in 2020. The IRS now requires individuals to report capital gains realized from any cryptocurrency transactions.
The Treasury Department said that reporting the crypto transactions is necessary “to minimize the incentives and opportunity to shift income out of the new information reporting regime,” according to the report. It noted that cryptocurrency is a small share of current business transactions.