Treasury wants cryptocurrency transfers above $10,000 to be reported to IRS as they are a tax evasion risk
THE Treasury Department plans to crack down on cryptocurrency transfers, requiring anything above $10,000 to be reported to the IRS.
The move, which the department announced Thursday, is part of an effort to curb illegal activity associated with the currency, including tax evasion.
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"Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion," the .
"This is why the president's proposal includes additional resources for the IRS to address the growth of cryptoassets.
"Within the context of the new financial account reporting regime, cryptocurrencies and cryptoasset exchange accounts and payment service accounts that accept cryptocurrencies would be covered.
"Further, as with cash transactions, businesses that receive cryptoassets with a fair market value of more than $10,000 would also be reported on," the report continued.
More regulation could put some crypto investors off, especially after the about 25 percent over the past month.
Depending on how they are structured, the new requirements could allow the government to gain insight into how hackers target US companies and extort them to pay ransoms, almost always in cryptocurrency.
The move comes after a group of and demanded ransom, an attack that led to widespread gas shortages along the East Coast.
The Treasury Department said the proposed changes could shrink the ";tax gap" in the US by about 10 percent.
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The tax gap is the difference between the taxes legally owed to the government and those collected by the IRS.
Currently the department estimates that the gap would be about $7trillion over the next decade.
In 2019 alone, the gap was estimated at $584billion, according to the department.