In a resolute letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, Congressmen Brad Sherman and Stephen Lynch have demanded the implementation of tax regulations for the crypto industry.
Expressing concern over tax compliance practices in the crypto space, they highlighted its role in tax evasion and contributing to the nation’s tax gap. Citing a September 2020 audit report by the Treasury Inspector General for Tax Administration (TIGTA), they emphasized the IRS’s challenge in identifying pro-crypto taxpayers due to inadequate reporting.
Concerns over the lack of tax regulations in the crypto industry have been raised by Congressmen Brad Sherman and Stephen Lynch in a letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel. The Infrastructure Investment and Jobs Act, signed into law by President Joe Biden in November 2021, mandated the reporting of crypto transactions starting in 2023.
However, the Congressmen highlighted that the proposed regulations have yet to be issued. Additionally, the Biden administration’s push for a 30% Digital Asset Mining Energy (DAME) tax on cryptocurrency miners, initially announced in March 2023, did not make it into the recent legislation addressing the U.S. debt ceiling.
Although concerns have subsided regarding the proposed 30% Digital Asset Mining Energy (DAME) tax on crypto miners, advocates of cryptocurrencies believe it could be a temporary reprieve. Coin Metrics co-founder, Nic Carter, suggests that the administration might reintroduce the tax in a future omnibus bill. As of now, the White House has not responded to inquiries about its intentions regarding the pursuit of the DAME tax.