Digital Asset Sales to Come Under Increased IRS-Treasury Scrutiny

The government is enforcing new regulations to crack down on tax cheats making use of crypto assets.

Department of Treasury building in Washington, on April 10, 2023. Madalina Vasiliu/The Epoch Times

The U.S. Treasury and the IRS have proposed new reporting requirements for digital asset brokers like cryptocurrencies and NFTs in an attempt to “crack down on tax cheats” and help citizens assess tax dues arising from such asset transactions.

Regulations “would require brokers of digital assets to report certain sales and exchanges,” the U.S. Treasury said in an Aug. 25 press release. The proposed regulations “is part of a broader effort at Treasury to close the tax gap, address the tax evasion risks posed by digital assets, and help ensure that everyone plays by the same set of rules.”