Washington D.C. The wash sales laws will require crypto traders to report their gains and losses on their tax returns, just like traditional stock traders. This move is expected to generate billions of dollars in revenue for the government.
The proposal also includes plans to increase the IRS budget to hire more staff to monitor crypto transactions. The IRS will be given more power to investigate and prosecute crypto tax cheats. The government will also work with international partners to crack down on tax evasion in the crypto industry.
The crypto community has mixed reactions to President Biden’s proposal. Some believe that it is a necessary step to regulate the industry and prevent tax evasion. Others argue that it will stifle innovation and drive away investors.
The proposal is still in its early stages and will need to be approved by Congress before it can be implemented. It remains to be seen how the crypto industry will respond to the new regulations and how it will affect the overall market.
In conclusion, President Biden’s proposal to increase crypto tax in the 2024 budget is a significant move to address tax evasion in the crypto industry. The proposal aims to generate billions of dollars in revenue for the government and reduce the current deficit. However, it remains to be seen how the crypto community will react to the new regulations and how it will affect the overall market.
