The U.S. Treasury Department wants new rules [PDF] to make it easier to track how cryptocurrency moves around. Businesses would also be required to report cryptocurrency transactions above US$10,000 to the IRS.
According to the report, the IRS collects 99 percent of taxes due on wages, but that number is estimated to be as low as 45 percent on non-labor income, a discrepancy that hugely benefits high earners with “less visible” income sources. The Treasury calls virtual currency, which has some reporting requirements but still operates mostly out of sight in regulatory grey areas, a particular challenge.
Ultimately, I think this is good for cryptocurrency because it gains legitimacy with moves like this.
Check It Out: Treasury Department Wants Mandatory Reporting for Crypto Transfers Over $10K