US Congress Passes $ 1.2 Trillion Bill on Cryptocurrency Tax and More 7/11/2021

US Congress passed a $ 1.2 trillion infrastructure bill that will pave the way for a cryptocurrency tax and also change the definition of a broker to include money services.

If the president approves the new law, the IRS can raise an additional $ 28 billion from taxing cryptocurrencies. The US Congress passed the bill by 228 votes to 206. Several key areas related to digital assets have not been clarified to meet crypto user satisfaction. The U.S. Congress passed $ 1.2 trillion bill to improve American infrastructure through a variety of measures such as taxing cryptocurrency brokers.

The bill was passed by US Congress with a final 228-26 vote, which marked a historic moment for crypto in the United States.

This means that if the bill is signed by the president, centralized exchanges like Coinbase are treated as brokers and are required to report their transactions directly to the IRS. Brokers are required to file 1099 forms disclosing their clients’ names and addresses, and after that the government can collect additional taxes of $ 28 billion through crypto due to reporting requirements. When the bill was originally drafted, crypto companies raised concerns that the new definition of a broker would even include crypto miners, wallet companies, or validators.

The whole challenge started when the Senate opposed an amendment in August to exempt crypto companies from new tax reporting requirements without custody, and the Toomey-Warner-Lummis-Sinema-Portman amendment aimed to make it clear that undocumented actors like wallet- Vendors, miners, and validators are not required to report to the IRS. senator Ted Cruz Also called for the cryptocurrency regulation to be repealed, but Senator Shelby refused to change that.

Americans report their crypto gains to the IRS as they do with any investment, but the POSA report argues that the bill means they must report receipts of valuable digital assets greater than $ 10,000 by providing the identity and social security number of the company Specify the user who makes the payment. Failure to do so within 15 days is a criminal offense.

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