Treasury Calls for Crypto Transfers Over $10,000 to Be Reported to IRS

[swag]

Source: Bloomberg

By Laura Davison
and Christopher Condon

The U.S. Treasury said the Biden administration’s proposal to strengthen tax compliance includes a requirement for transfers of at least $10,000 of cryptocurrency to be reported to the Internal Revenue Service.

“As with cash transactions, businesses that receive cryptoassets with a fair-market value of more than $10,000 would also be reported on,” the Treasury Department said in a report on tax-enforcement proposals released Thursday.

The Treasury said that comprehensive reporting is necessary “to minimize the incentives and opportunity to shift income out of the new information reporting regime.” It noted that cryptocurrency is a small share of current business transactions.

Bitcoin pared a daily advance after the IRS announcement, which shaved about $3,000 from the token’s price. It was up 5.7%, at $40,530 as of 4:23 p.m. in New York. Cryptocurrency-linked stocks like Coinbase and MicroStrategy also gave up some of their gains immediately after the news, which had also prompted an outcry from some digital-coin enthusiasts on Twitter.

Read more: https://www.bloomberg.com/news/articles/2021-05-20/treasury-calls-for-crypto-transfers-over-10-000-reported-to-irs

[Eugene]

1. There wasn't such a rule in place already?

Yes, crypto is a small portion of all activity, but its use by criminals and terrorists is well known.

[ColinC]

2. I think there has been an attempt to ignore it hoping not to legitimize crypto

Over the years. This rule is long overdue and I look forward to seeing many like it.

[Dopers_Greed]

3. Wait...

So does this mean I don't currently need to report my sick BTC gains ($3k) to the IRS next year?

Sounds good to me!

[ColinC]

4. If you sold it, you do.

If you held onto it, you don't (so far)

[oldsoftie]

5. Their cash withdrawal rules should be unconstitutional

If I withdraw over 10k the bank has to fill out this long, stupid form asking me why. its MY money. Its nobody's business WHAT I'm going to do with it.
Making a deposit is a totally different story.

[bucolic_frolic]

6. Ideas have been floated to eliminate cash

Drive it out of circulation. Enact a % fee to deposit it. But it's just ideas as pundits ponder what the government could do to eliminate cash.

I don't understand crypto. Vaguely.

[oldsoftie]

8. They want to do that so they can see EVERYTHING.

Without cash, the government would know every single thing you bought. I will never support getting rid of cash.

[oldsoftie]

11. As for crypto, I still feel like its a huge Ponzi

I remember when millions "disappeared" a couple yrs ago from some "wallet" or whatever, and no one could do a damn thing about it. It was called the Mt Gox theft. https://www.wired.com/2014/03/bitcoin-exchange/

I feel like a bigger version of that will happen at some time. The largest holder of bitcoin isnt even a known person. That seems like a red flag!

[bucolic_frolic]

13. Same here, I feel like it's where they're hiding the QE cabbage

If they could have bled off a couple hundred million during the Dutch Tulip Mania, prices would have been kept stable and rising for a long time. That's what's going on here.

[RandiFan1290]

7. Cons said trump was going to solve all of these problems?

How'd that work out?

[oldsoftie]

9. when did trump ever say anything about cash rules?

He's too stupid to even understand my post
He doesnt know anything about it; he HAS no cash! He OWES everybody!

[RandiFan1290]

10. Thought filing would be as easy as sending in a post card?

[oldsoftie]

12. Oh THAT. Well we've been hearing that since '84

As far as that goes, EVERY President & Congress has been full of shit.

[brush]

14. Word to the wise. 10k withdrawals is what they put out but...

it's more like $6500 and up withdrawals that get reported.

And they also question patterns of withdrawal—like a series of $2500 withdrawals.

[Martin68]

15. That's the law for any overseas transfer, cash-carrying traveler, or any foreign bank account.

[Ursus Rex]

16. It's funny how that rule has been misinterpreted into urban legend.

The urban legend states that "you can't take X amount of cash out of the US." I personally know someone who cashed out a bank account and took a satchel full of money to go visit mutual friends overseas. They were allowed to take that whole bag of $250k in cash on the plane after signing some forms declaring the amount, etc. I imagine it would be different if the destination was on the OFAC list or whatever, but this time it wasn't. They got there with literally nothing but the quarter-mil he carried on. Our mutual friends were astonished to say the least, and he came back a few days later having only spent a few hundred, using the exact same process (again, if the country he was visiting had been differently-inclined, that may have been a different matter).

[Martin68]

17. It doesn't matter how much you carry (although the DEA and others might take interest) as long as

you declare it and report any amount you have residing in foreign bank accounts on your income tax submission.