A bipartisan group of US senators has asked Treasury Secretary Janet Yellen to clarify the language of the infrastructure law signed by President Joe Biden around cryptocurrency tax reporting requirements.
In a letter sent Tuesday, Senators Rob Portman, Mike Crapo, Pat Toomey, Mark Warner, Kyrsten Sinema and Cynthia Lummis urged Yellen to “provide information or informal guidance” on the definition of “broke” in the recently passed brokerage law. infrastructures, HR 3684. Under current wording, people in the cryptocurrency space, including miners, software developers, transaction validators, and node operators, are required to report most digital asset transactions worth more than USD 10,000 to the Internal Revenue Service, or IRS.
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However, according to US lawmakers, the law contains an “overly broad interpretation” of what a broker is and places an undue burden on certain individuals who may not have the necessary information about transactions to comply with the law. All six said Yellen is empowered to use the Administrative Procedure Act, legislation that determines how federal agencies can make and issue regulations. In this case, they urged it to provide a set of rules that clarify the definition of corridor “expeditiously”, or at the latest by the end of the year.
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