Jorge Castro Quoted on Proposed Reporting Requirements for Foreign Cryptocurrency Investors in Bloomberg Law

"Biden Targets Crypto Tax Evaders in Global Data-Sharing Pitch"

BLOOMBERG LAW

06.02.2021

Tax Member Jorge Castro, former Congressional tax aide and Counselor to the IRS Commissioner during the Obama Administration, commented on the Biden Administration's proposal to require the collection of data on foreign cryptocurrency investors active in the U.S. The Treasury's recently released "Greenbook" proposes requiring cryptocurrency brokers to provide information to the IRS on foreign individuals indirectly holding accounts with them – aimed at bolstering international cooperation to help in a broader crackdown on tax evasion. Castro said "[The Treasury Department and IRS] clearly feel that right now there's a blind spot for foreign owners." The Greenbook also proposes separate reporting requirements for situations in which taxpayers buy cryptocurrency assets from one broker and then transfer them to another. In addition, businesses that receive transfers of cryptocurrency valued at more than $10,000 would have to report those transactions to the IRS. The Biden Administration is proposing that all of the new reporting requirements go into effect in 2023. "That seems ambitious," Castro said.