The US House of Representatives voted to pass a bill that requires accounting for cryptocurrency assets in tax reporting. 218 members of the House voted for the adoption of this bill - now it is sent for signature to the President of the country. The Senate approved the document back in August.
Crypto industry representatives were concerned about the initiative to expand the broker definition for the IRS. In accordance with the current Tax Code of the country, all brokers are required to report transactions. It was feared that the definition would be too broad and encompass too many actors, including miners.
Fears were also caused by another provision, providing for amendments to one of the sections of the Tax Code, which was adopted almost 40 years ago and dealt with transactions in the amount of more than $ 10,000 in the personal presence of the parties. According to the norms of this section, in monetary transactions, the recipient undertakes to verify and record the personal data of the sender, as well as the nature of the transaction, and then report it within 15 days to the appropriate department. Violation of this provision is subject to criminal prosecution, but in the case of cryptocurrencies and NFT assets, its execution is almost impossible.
The dubious nature of this requirement caused active discussions in the Senate, but after 11 hours of discussions, the bill was adopted in its original form. As the document enters into force, the US Treasury will have to clarify how it will interpret it and publish guidance on how businesses comply with it.
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