US Treasury Department requests more reporting to the IRS on offshore crypto accounts.
The US Treasury Department would like to receive more information from the IRS on offshore cryptoassets. In the Treasury’s Green Paper, a breakdown of the annual budget, released as of March 28, he presented a proposal to extend a rule to digital assets that requires U.S. persons to report foreign financial accounts of more than $50,000. The proposal included the following statements:
“Tax compliance and enforcement related to digital assets is a rapidly growing problem. Because the industry is purely digital, taxpayers can transact with overseas digital asset exchanges and wallet providers without leaving the United States.”
The proposal also plans to apply the Foreign Accounts Tax Compliance Act to foreign users holding crypto assets on US-based exchanges.
If approved, the changes are expected to take effect in early 2023.
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