In an effort to combat cryptocurrency scams, the Treasury Department announced on Thursday that all payments of at least $10,000 must be disclosed to the Internal Revenue Service.
The announcement was part of the Biden administration’s 24-page tax compliance agenda seeking to close the “tax gap” between taxes owed the government and those actually paid. The Treasury Department said 2019 had a tax gap of nearly $600 billion, a figure that’s likely to rise to about $7 billion over the next decade if unaddressed.
The report said cryptocurrencies and cryptoasset exchange accounts would be brought into a new financial account reporting regime.
“Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” the report said.
The department stated that its current strategy would generate an additional $700 billion in tax revenue over the next decade. In contrast, the United States is expected to raise somewhat more than $3 trillion in tax revenue in 2020.
Any initiatives, such as increasing IRS spending to carry out the agenda, will need congressional approval.