Section 9674 of the American Rescue Plan Act of 2021, which mandated new reporting requirements as of Jan. 2022, and other onerous and unrealistic requirements, still need to be revoked: U.S. laws have been causing capital flight and are holding back bitcoin innovators
This is just one example, below, of horrible monetary policy and law under this administration, which needs to be reversed (article quoted in part), from November of 2021:"The crypto industry (is) concerned about a tax reporting requirement within the bill that (expands) the definition of a broker for Internal Revenue Service purposes. The reporting requirement would see all brokers report transactions under the current tax code.
Industry proponents worried the definition would be too broad, capturing entities like miners and other parties that don’t actually facilitate transactions.
Another provision included in the bill to amend tax code section 6050I has also stoked fear in the crypto industry. The law, written nearly 40 years ago to apply to in-person cash transactions over $10,000, essentially requires recipients to verify the sender’s personal information and record his or her Social Security number, the nature of the transaction and other information, and report the transaction to the government within 15 days."
This bill, written by absolute dinosaurs, had a chance to at least be modified in late November 2021 but because of idiots in Congress that didn't happen. With a new Congress we should again try to get these lousy requirements removed that nobody can logically comply with.
Original article here:
H.R. 3684 summary here: https://www.gibsondunn.com/infrastructure-bills-new-reporting-requirements-may-have-sweeping-implications-for-cryptocurrency-ecosystem/
American "Rescue Plan" Act of 2021 (H.R. 1319) summary including Section 9674 explainer: https://www.frazierdeeter.com/insights/network-payment-reporting-threshold-of-600-goes-into-effect/
Note: When Congress passed Section 9674 of the American Rescue Plan of 2021, it wrote a back door exemption for certain persons including individuals and corporations with a foreign address. Under 26 U.S. Code Sec. 6050W(d)(1)(A-B), you will see that persons with a foreign address are exempt from the 600 dollar threshold reporting requirement (and its seems they would not have to report at all at any level). With that said, this provision to require reporting at a transaction value of 600 or more never should have become law, and the anti-crypto provisions of H.R. 3684 and H.R. 1319 need to be reversed / revoked.
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