Published: 29.03.2022
Article reading time:
1 minute.
The administration of US President Joe Biden has published a budget plan for 2023, which proposes new tax reporting rules for cryptocurrency holders.
The administration estimates that the U.S. could generate about $11 billion in revenue over ten years and nearly $5 billion next year by modernizing the rules for applying certain financial accounting and reporting practices for digital assets. According to the document, the Biden administration projects $6.6 billion in revenue between tax years 2023 and 2032 from applying mark-to-market rules to actively traded cryptocurrencies. It is a way of taxing unrealized profits.
The government also plans to increase income by requiring US residents to report any assets in offshore accounts greater than $50,000. The document says that the global nature of the digital asset market allows US taxpayers to hide assets and taxable income using offshore digital asset exchanges and suppliers. wallets. By tightening reporting requirements, the Biden administration expects to add $2.2 billion to the coffers over the next ten years.
To help identify taxpayers, the government intends to work with third parties. Deanonymization of users, according to the US government, will help prevent tax evasion. Earlier, a bill was presented in the US Congress that proposes to transfer control over the issuance and circulation of the digital dollar to the Treasury.
Source: Bits
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