A group of seven U.S. Senators, including prominent figures Elizabeth Warren and Bernie Sanders, submitted a letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel. This letter voiced the Senators’ concerns regarding a significant delay in implementing a proposed rule concerning tax reporting requirements for cryptocurrency brokers. The rule, designed to bridge a substantial cryptocurrency tax gap, has seen a two-year delay, pushing its effective date to 2026 for transactions occurring in 2025.
The proposed regulation is a response to the growing crypto tax gap, which, as of 2022, was believed to cost the IRS around $50 billion annually. This loss stems from either consumers’ lack of understanding regarding crypto transactions’ tax implications or deliberate tax evasion by malicious actors. By instituting reporting requirements for crypto brokers, the rule aims to provide both crypto users and the IRS with…
