Insights

IMPORTANT: Amendment In Infrastructure Bill For Bitcoin

Yesterday on November 15, Bloomberg reported. Two U.S. senators; Ron Wyden, and Cynthia Lummis introduced a bill to amend the tax reporting requirements that are inside the infrastructure legislation.  

Bloomberg reported “The new bill… seeks to override a provision in the infrastructure legislation that cryptocurrency investors say is overly broad and would stifle growth of digital currencies,” 

In September Bitcoin Magazine reported on a tax change introduced inside of the infrastructure bill that would require all U.S. persons receiving $10,000 or over in bitcoin/cryptocurrency to report the sender of that crypto’s personal information to the IRS. This was an extension of the provisions of section 6050I that as of that time only applied to cash transactions.

Wyden said about the amendment that “Our bill makes clear that the new reporting requirements do not apply to individuals developing blockchain technology and wallets. This will protect American innovation while at the same time ensuring those who buy and sell cryptocurrency pay the taxes they already owe.”

The important takeaway here is that if you send your Crypto in an amount above $10K to an exchange for example, that exchange will have an obligation to provide your personal info to the IRS. 

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