The US government recently revealed its “Greenbook” of revenue suggestions, in which it indicated its intention to collect data on international crypto investors doing business in the United States. The move is part of a more significant global effort to combat tax evasion.
According to Bloomberg, the move will oblige exchanges and wallet providers to supply the IRS with information on foreigners who have accounts with them.
The proposal comes as a growing number of people throughout the world express concern about a potential tax gap between taxes owed and taxes paid on time. According to IRS Commissioner Charles Rettig, the difference might be worth more than $1 trillion every year.
The US government is attempting to identify this alleged “blind spot,” in which international cryptocurrency investors operate in the US without reporting their profits to their home countries’ tax authorities.
The United States would then share this information with its colleagues in other nations to exchange information on their people who may be utilizing offshore exchanges and wallets to avoid paying taxes in the United States.
The Biden administration plans to lobby Congress for legislation that will empower the IRS to strengthen its tax enforcement and collaborate with its counterparts worldwide.
The IRS’s Criminal Investigation division is already collaborating with tax authorities in other nations, including Australia, Canada, the United Kingdom, and the Netherlands, to prosecute tax evaders, including those who make unreported cryptocurrency earnings.
According to the Greenbook plan,
Financial institutions would be required to report all transactions to and from overseas accounts under the proposal and share this information for business and personal accounts over a $600 threshold.