WASHINGTON—The Treasury Department is set to clarify that only cryptocurrency companies it considers brokers will need to comply with proposed IRS reporting requirements, aiming to quell concerns over a provision in the bipartisan infrastructure bill passed by the Senate.
Among those that have expressed concerns over the proposed reporting have been credit unions, with both national trade groups issuing statements opposing the plan.
In addition, firms key to the nearly $2-trillion crypto market – from developers and miners to hardware and software providers – won’t have any new requirements, so long as they don’t also act as brokers, according to a Treasury official, Bloomberg reported.
$28 Billion Estimate
According to Treasury, the guidance won’t grant blanket exemptions based on how firms identify themselves and instead will focus on whether a firm’s activities qualify it as a broker under the tax code, the official said on condition of anonymity.
“The guidance, which could be made public soon, is an attempt to address concerns in the cryptocurrency industry that the $550-billion infrastructure bill would require a host of companies with ties to digital assets to report data to the Internal Revenue Service that they don’t have,” Bloomberg stated.
The tax provision, estimated to raise $28 billion over a decade, was included in the legislation as a way to help pay for new investments in roads and bridges, Bloomberg noted.