The Financial Express
Patrick McHenry, incoming chair, United States House Financial Services Committee, wants the Treasury to postpone a section’s implementation of the Infrastructure Investment and Jobs Act around digital assets and tax collection, as reported by Cointelegraph.
According to Cointelegraph, on December 14, 2022, McHenry sent a letter to Janet Yellen, secretary, US Treasury, pertaining to questions and concerns of Section 80603 of the Act. Context of the letter revealed that McHenry asked for clarifications over the “poorly drafted” and potentially privacy-infringing section around taxation of digital assets. The Act is expected to be implemented in the upcoming year. McHenry highlighted that the section should focus on government treating digital assets as an alternative to cash for taxation purposes, which could “jeopardise” Americans’ privacy and affect innovation.
On the basis of information by Cointelegraph, McHenry laid the argument that the section called “Information Reporting for Brokers and Digital Assets” has been drafted badly and that the term “brokers” could be wrongly interpreted, with regard to people and companies than intended. It is believed that the Act consists of a provision around individuals or entities involved in trade or business to report to the IRS any digital asset transaction going beyond $10,000.
Moreover, Cointelegraph noted that insights from Fordham International Law Journal revealed that the section is expected to impose reporting requirements on major cryptocurrency exchanges which have details such as user information, customers’ names, addresses, social security data, among others. In February, 2022, Rob Portman, US Senator, tweeted a letter from Jonathan Davies, US Assistant Secretary for Legislative Affairs, which gave clarifications that cryptocurrency miners and stakers don’t fall under the new legislation. Further, McHenry’s letter asked the Treasury to publish rules under the section.
(With insights from Cointelegraph)
Follow us on Twitter, Facebook, LinkedIn
Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.
How To Make Huge Profits In A Short Time With CryptoGet detailed training system that shows an absolute beginner (without any skill) how to make huge profits in a short time with crypto.
Crypto + NFT Quick Start CourseThe #1 course for profit in the Crypto & NFT world - You will discover the secrets that 99% of people don’t know yet
