Congressmen Demand Crypto Tax Regulations, Express Concerns of Tax Evasion

Congressmen Brad Sherman and Stephen Lynch have written a letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, urging the implementation of tax regulations for the crypto industry. They expressed concerns about tax evasion and the tax gap associated with cryptocurrencies. The congressmen referenced an audit report highlighting the IRS's inability to identify pro-crypto taxpayers due to a lack of reporting. They also mentioned that proposed regulations for reporting crypto transactions, required by the Bipartisan Infrastructure Bill, have yet to be released. The Biden administration's proposed 30% Digital Asset Mining Energy (DAME) tax on cryptocurrency miners did not make it into recent legislation, but crypto proponents expect future attempts.