Bitcoin brokers in the US are not required to share customer data with tax authorities. This specifically involves reporting client profits to the Internal Revenue Service (IRS).
According to the IRS, there were only about 100,000 tax returns reporting crypto transactions in 2019. For example, in the United States, you officially have to pay a profit tax of up to 37% on the transaction or liquidation of your BTC. However, it can be difficult for tax authorities around the world to track who is doing what and where.
So companies in the industry need to share funds with the IRS as soon as possible. However, the rules and guidelines for this are yet to be prepared.
A colossal $1 trillion bill (infrastructure bill) in 2021 covers many issues surrounding Bitcoin and crypto. On January 1, 2023, Bitcoin sellers will have to actively report. The plan should ultimately generate $28 billion in additional tax revenue over the next 10 years.
The question arises as to when the new rules will come into effect. However, it is only a matter of time and there will be no deviation from the chosen line of controls. Like other governments, the United States faces a number of challenges in this changing industry.
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