The "Fair Taxation of Cryptocurrencies" bill was reintroduced to the U.S. House of Representatives. The initiative provides a capital gains tax exemption when profits from the use of digital assets do not exceed $200.
The bill was introduced by Arizona Republican David Schweikert and Washington Democrat Susan Delburn. Darren Soto and Tom Emmer, co-chairs of the blockchain group, also worked on it.
“The approval of the document will allow Americans to use their digital wallets as easily as they can use cash,” Emmer said.
Cryptocurrency users in the U.S. can now report capital gains to the IRS based on the value of cryptocurrencies, not only for investment purposes, but also for payments. The IRS does not typically prosecute those who fail to file proper reports, but the lack of regulatory certainty in this matter remains an unresolved issue.
Recall that the IRS will receive an additional $28 billion in tax revenue from the cryptocurrency business. The infrastructure plan adopted by Joe Biden may require blockchain miners and nodes, wallet developers, DeFi liquidity providers and other non-custodial participants to report the activities of their users to the IRS.
In March 2021, the IRS explained that residents are not required to report their cryptocurrency purchases on the first page of their Form 1040 returns if they use the HODL strategy. Later, the service clarified that it was only interested in taxable transactions.
Earlier, the U.S. Treasury Department prioritized the development of guidelines for taxing cryptocurrencies.
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