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Senator Rob Portman said that lawmakers were “still pulling in information” on cryptocurrency to draught the bill, suggesting that he released it prematurely.
A Republican senator from Ohio is currently working on bills to prohibit US residents from evading taxation on their cryptocurrency profits.
Senator Rob Portman said today on CNBC’s Squawk Box that he intended to pass a bill with bipartisan support during the next legislative recess to fix the issue of multiple crypto users in the United States not paying taxes. According to the senator, lawmakers “don’t have the final bill yet” and are “still pulling in information” on the topic. He did, however, state that both Republicans and Democrats were involved in closing the crypto tax gap.
“The idea is to have better information reporting on cryptocurrency, and to define it better for tax purposes,” said Portmand. “There is […] a trillion-dollar tax gap right now. Some of that tax gap is attributable to the cryptocurrency issue.”
According to data from the Internal Revenue Service, or IRS, in October, 83.6% of taxes were paid “voluntarily and on time” from 2011 to 2013. During this period, the U.S. government lost an average of roughly $400 billion a year.
Portman brought up the draught bill at a Senate Finance Committee meeting last Tuesday, where he confronted IRS Commissioner Charles Rettig. The commissioner said that establishing effective reporting standards for cryptocurrency would “absolutely” assist in closing the tax gap.
Rettig cited his position in including a query on the 2019 tax return forms asking filers whether they had purchased, traded, shipped, or shared some financial interest in cryptocurrencies. He went on to say that some elements of the crypto universe, such as nonfungible tokens, were “not visible by design.”
Other U.S. policymakers have attempted to establish guidelines for disclosing cryptocurrency on taxation as the platform has become more popular in portfolios. Last year, two House representatives proposed the Virtual Currency Tax Fairness Act of 2020, which aims to provide an exception for crypto expenditures that count as personal expenses.