The US Incessantly Withdraws Crypto Taxes, Forces Brokers to Report Profits and Losses from Sales of Digital Assets

Crypto rules in the US. (Photo; Doc. TheCurrencyAnalytic)

JAKARTA - The United States Government Accountability Office (GAO) has warned about the importance of reporting third party information to the Internal Revenue Service (IRS) as a major factor in tax gaps, namely the difference between taxes that should be paid and actually paid.

To address this, the United States Department of the Treasury and the IRS have released new regulatory proposals regarding crypto assets. This proposal requires brokers to report profits and losses arising from the sale of cryptocurrencies and digital assets.

According to a statement released by the US Small Business Administration's Advocacy Office, the rule will require digital asset brokers, trading platforms, payment processors, and certain digital wallet providers to report the gross results from all sales or exchanges of digital assets starting January 1, 2025.

Under certain circumstances, brokers will also be asked to provide information regarding profit or loss, as well as basic information for sales that occurred on or after January 1, 2026.

In a document shared through the Federal Register, it was noted that the disguises offered by blockchain technology create significant risks in tax administration. This includes the use of digital assets in traditional finance, derivatives trading, tokenized stocks, shared security interests, and Non-Fungible Tokens (NFTs).

The GAO has previously released a report urging stricter regulations in the case of cryptocurrencies. They highlight the need for federal regulators to oversee the non-secured crypto asset market in order to reduce financial stability risks and better protect platform users.