Crypto Taxes Remain a Priority in 2021-2022 US Treasury Guidance Plan

The US Treasury zeroes in on crypto for the upcoming quarters and prioritizes guidance and regulation.

By
Kyle Heise
on
September 12, 2021
Category:
Blockchain News

Guidance Coming For Crypto

In the latest iteration of the US Treasury Priority Guidance Plan, the body indicated a desire to clarify regulation and tax information for virtual currencies. The familiar fight over the definition of ‘broker’ will hopefully be given some clarity.

The 2021-2022 Priority Guidance Plan, issued on September 9th, spelled out the priorities for the Department and the Internal Revenue Service (IRS) for the coming months. The scrutiny from the department will continue as the Department made regulation and guidance regarding virtual currency a priority.

“Regulations regarding information reporting on virtual currency under §6045,” cited the plan on page 17 under the Tax Administration section.

The key aspect of the communication is the ‘section §6045’ reference of the IRS code. Rule §6045 contains guidance regarding brokerage reporting, a fight against the crypto-currency industry that the Department seems keen on clarifying. The definition of the term is at the center of regulation and has already led to Congressional debate.

Source

The Term Broker

The definition of ‘broker’ is still center stage in the US Congressional Infrastructure Bill that is currently awaiting debate in the House of Representatives after the crypto industry failed to rally amendment changes from the Senate. Many believe the term’s current usage in the bill would significantly impact unwanted parties across the crypto industry. 

Regulators across multiple agencies in the United States have begun to act on crypto. The IRS notably asked for an additional $32 million to increase its crypto and cyber operations for the upcoming fiscal year. The tax agency has repeatedly hinted that clear regulation will be coming but there is still no answer.

In August, the Treasury indicated—after much debate and rigmarole—that it would choose to use a more narrow definition of the term ‘broker.’ This announcement came as a relief to many in the crypto industry. The latest announcement signals that clarity, or more rallying, is on its way.

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Kyle Heise

Born and raised in the East Bay of California. He has studied and worked on three continents and lived in eight countries. Kyle resides in San Francisco. Go Giants!

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