The Internal Revenue Service (IRS) of the United States seeks to collaborate with cryptocurrency businesses to combat crime in the industry. A senior IRS law enforcer quoted a news publishing house saying that the agency would want to engage with cryptocurrency companies because “cryptocurrency was here to stay.”
The news publishing house was informed by Thomas Fattorusso, the special agent in charge of the IRS-New CI’s York field office, that the IRS was hiring hundreds of new employees. Despite his opposition to the asset class, Fattorusso insisted that the IRS embrace technology rather than be antagonistic. A further point he made was the increase in legitimacy and sophistication of the asset class. In order to create a “symbiotic relationship,” he, therefore, wants to work with crypto firms.
Additionally, Fattorusso expressed optimism about the agency’s ability to achieve that goal by adding younger, tech-savvy employees. The agency, which has stepped up its operations relating to cryptocurrencies, would undoubtedly benefit from this.
A revised proposal of the IRS’s crypto reporting regulations for the 2022 tax year was made public. Taxpayers now need to report NFTs as well, which is one of the biggest changes. However, cryptocurrency purchases are made via PayPal, and Venmo would not require reporting, according to the form 1040 proposal. Over the years, the IRS has repeatedly changed tax reporting requirements for cryptocurrencies. This time, a unified set of rules for the asset class is developing.
When combating crypto-related crimes, the IRS is also not easing off. A September 2022 court judgment gave the IRS the right to enforce anybody who failed to pay their crypto taxes. Like other national authorities, it is evident that the IRS is stepping up efforts to regulate the cryptocurrency sector. On a positive note, all of these authorities support the operation of crypto companies as long as they do it legally.
Not just the IRS wants to meet and consult with executives from the cryptocurrency industry. SEC Chairman Gary Gensler invited businesses to meet with the SEC in July 2022 better to establish the regulatory framework for the cryptocurrency industry.