Coinbase Global Inc., a cryptocurrency exchange, has spoken out against the IRS’s proposed new tax policy.
According to CoinDesk, Coinbase has responded to an Internal Revenue Service proposal that would designate cryptocurrency brokers and provide guidance to both the brokers and their customers on tax compliance.
Zlatkin contended that the restrictions might prevent the IRS from enhancing the services it provides to taxpayers.
Even before receiving Coinbase’s letter, the IRS had identified cryptocurrency as a source of the “tax gap,” or the loss of potential tax income. The crypto exchange has asked the IRS to revise the plan so that compliance is only required from those directly participating in digital asset transactions, as is the case in traditional finance.
Senator Elizabeth Warren (D-Mass.) and other Democrats have urged the IRS to ignore industry complaints and swiftly implement the regulations to prevent tax revenue loss.
Before completing the regulation, the IRS will take into account the public comments submitted through October 30.
On September 11, 2023, Coinbase CEO Brian Armstrong publicly attacked the SEC’s stance on cryptocurrencies and said a change in SEC leadership would assist in ending the agency’s continuing battle with Coinbase.
An Oppenheimer analyst predicts that the industry leader will have a difficult third quarter and that this coincides with their fears regarding regulatory choices.
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