The IRS is on a mission to obtain funding to pursue those who are evading cryptocurrency taxes. To help with their plan, the IRS believes that $32.3 million in additional funding should do the trick.
The plan includes "expanding the use of specialized contractor support services provided by a group of cyber/crypto experts." The $32.3 figure would also be slated to go toward building an internal dashboard for blockchain analysts to work with.
The Biden administration has outlined some proposals in a 2022 budget proposal back in May. One proposal consisted of requiring financial institutions to report the data on users with transactions that surpass $600. Another proposal is focused on reporting broker information as it pertains to crypto assets as well as reporting financial accounts.
As the popularity and notoriety of cryptocurrency grow, so do the limitations and stipulations for managing it. If you are looking to invest in cryptocurrency, it is very imperative that you do your research on how it can affect your taxes so that you are not blindsided at any turn.
Sinclair, S. (2021, June 9). IRS Wants $32M in Funding to Enforce Crypto Taxation, Hire Contractors. CoinDesk. https://www.coindesk.com/irs-tax-crypto-criminal-investigation-division-report-plan.
De, N. (2021, May 28). Biden's 2022 Budget Includes New Crypto Reporting Proposals. CoinDesk. https://www.coindesk.com/bidens-2022-budget-includes-new-crypto-reporting-proposals.