In the USA, miners and software developers will be exempt from reporting to the IRS

The infrastructure plan signed by Joe Biden requires this

14.02.2022 - 12:15

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2 min

What’s new? The US Department of Treasury has announced plans to exempt miners, software developers, and staking pools from reporting to the Internal Revenue Service (IRS). The agency stated this in a letter of response to the senators’ appeal who criticized the infrastructure plan adopted by President Joe Biden. Among other things, it implies that crypto brokers have to report to the IRS on transactions, Bloomberg reports.

Material on the Bloomberg website

What does the letter say? The Treasury Department notes that, firstly, the agency will form guidelines that will disclose a definition of “broker.” Secondly, according to the decision of the Department of Treasury, ancillary parties that cannot access information useful to the IRS should not be subject to the reporting requirements for brokers.

What is known about the law signed by Biden? In November 2021, the US president approved a $1,2 trillion law on financing infrastructure projects. The plan includes the allocation of $621 billion for transportation infrastructure upgrades, $400 billion to support the elderly and disabled, $300 billion to support the industrial sector, $213 billion to repair and build affordable housing, and $100 billion to develop the broadband’s networks.

The law also implies that the cryptocurrency brokers and operators have to report transactions of more than $10 000 in digital assets to the IRS. The document has been criticized by a number of senators. Senator Pat Toomey, for example, called it “too expensive and too dangerous for the innovative cryptocurrency economy.”

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