The Treasury reassured the six relevant senators that it does not plan to treat crypto miners, stake holders, and wallet providers. As a Broker or Broker for Tax Purposes
“The existing regulations Establish brokerage reporting duties only to market participants engaged in business activities that provide them with access to information about the sale of securities by taxpayers.”
The Internal Revenue Service (IRS) requires brokers or brokers to collect information about the entities with which they transact. This rule has become a problematic law on the crypto market and was the subject of much discussion last year.
such statutes It appears to require that all service providers involved in facilitating transactions for digital assets be a broker or broker.
such letter It was addressed to six senators: Cynthia Lummis, Mark R. Warner, Rob Portman, Kyrsten Sinema, Pat Toomey and Mike Crapo, all involved in an effort to change the language of the rule. to respond to privacy concerns as well as the technological impossibility of crypto miners to store data on all parties and their transactions.
However, the correction still requires a number of steps. This may include public opinion. to formalize the final tax reporting policy.
refer : LINK
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