Senators Warren and Sanders have called for closing a “$50 billion crypto tax gap”
Members of the United States Senate have made claims that billions of dollars are being stolen from the government by people who are evading taxes by using cryptocurrencies.
Several members of Congress in the United States have called on the Treasury and the Internal Revenue Service to move more quickly to close tax loopholes used by “crypto tax evaders.”
In a letter to the heads of both agencies dated August 1, four Democratic senators urged them to move quickly to implement new tax laws.
The Senators assert that there is a “$50 billion crypto tax gap,” and that delaying an update to tax legislation may cost the IRS and Treasury some $1.5 billion in revenue for the 2024 fiscal year.
Given the opportunity, tax cheats and the crypto firms ready to facilitate them will continue to trick the system, find ways to take advantage of loopholes and steal billions of dollars from the United States Treasury every year.
The senators refer to the $1.2 trillion infrastructure plan enacted by the Senate in August 2021, which includes new tax legislation. The legislation sought to impose new reporting requirements on cryptocurrency exchanges and brokers.
The letter states that over two years have passed since the legislation was approved and that the implementation date is less than six months away, yet Treasury has yet to publish new guidelines.
Although the measure has been signed into law, new tax regulations from the Treasury and the IRS have not yet been made public. Legislators are urging the agencies to publish and execute the regulations before the deadline of December 31, 2023.
As part of her campaign for re-election to the Senate, Elizabeth Warren has formed an “anti-crypto army” to combat the cryptocurrency business in the United States.
Sanders has signed on to many letters led by Warren that call for more regulations in the cryptocurrency industry, although being outwardly quieter on the topic than his fellow Democrats.
Grayscale Investments commissioned research showing that 59% of Democrats and 51% of Republicans saw cryptocurrency as the future of finance, indicating that Warren’s position may not be popular with the majority of voters.