Congress Members Call On Treasury Department, IRS To Ink Rules For Taxing Crypto

Democratic Congress members Brad Sherman and Stephen Lynch have publicly called for the U.S. Treasury Department and the Internal Revenue Service (IRS) to swiftly present forthcoming rules for cryptocurrency taxation.

They argue this would foster complete compliance from the fast-growing industry, according to a letter delivered on Monday.

Sherman, a veteran member of the House Committee on Financial Services, expressed his concerns, saying, "The crypto sector has, for several years, contributed significantly to tax evasion and thus widened the country's tax gap."

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The pair of lawmakers, Sherman of California and Lynch of Massachusetts, highlighted in their letter that despite the White House concluding its examination of the contentious tax reporting stipulations for cryptocurrency brokers from the 2021 infrastructure bill earlier this year, the government is still withholding the suggested regulations.

The controversy primarily stems from a vaguely worded definition of "broker," which could, inadvertently, impose reporting obligations on entities such as crypto miners and wallet providers that may not be in a position to fulfill such requirements.

The legislators' message goes on to assert that the cryptocurrency industry had the entirety of 2022 to gear up, and lamented, "now it seems they have been given a pass for 2023 too."

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