Last week, the U.S. House of Representatives passed a bipartisan $1.2 trillion infrastructure bill that includes the controversial cryptocurrency tax reporting requirement. President Joe Biden will now sign the bill into law.
The crypto industry was concerned about a tax reporting requirement within the infrastructure bill that expands the scope of a broker for the Internal Revenue Service (IRS). The reporting regulation would make all brokers report transactions under the current tax code.
Another provision that is included in the bill will amend tax code section 60501, which has also seen concern from the crypto sector. The law that was written almost 40 years ago would apply to in-person cash transactions over $10,000.
This essentially requires recipients to verify the sender’s personal information and record their social security number, why the transaction was done and report it to the IRS within 15 days of the transaction.