The United States Internal Revenue Service continues to propose new tax reforms to regulate crypto investments in the United States; the latest announcement shares tax obligations for the marijuana industry.
The advertising, signed by IRS Small Business / Self Employed Division Commissioner De Lon Harris, Reflects the U.S. federal agency’s priorities to ensure compliance with cryptocurrency taxes at local businesses that grow, distribute, and sell cannabis.
Commissioner Harris said the The use of cryptocurrencies in the cannabis industry is a top priority in enforcing the IRS. The statement coincides with the latest proposal by the Senate legislature from July 2021 to tighten taxation and information standards for companies that operate with cryptocurrencies. According to Harris:
â ???? The ones who use it [las criptomonedas] You need to understand that the IRS considers them property and there is income that is taxable.
What’s more The IRS commissioner recommended that cannabis companies partner with reputable exchanges to convert cryptocurrencies into US dollars.
The IRS still has to ask companies to explicitly report transactions with high-quality cryptocurrencies. Nevertheless, Businesses must file Form 8300 for any transaction that exceeds $ 10,000.
The Senate’s bipartisan infrastructure agreementthat was recently changed at the last minute, proposed funding to raise $ 28 billion worth of funds through taxation of investments and transactions in cryptocurrencies.
Following this example, last on September 13th The House of Representatives Democrats proposed new tax initiatives that would increase the tax rate on long-term capital gains. If approved, the law will increase crypto taxes for “certain high-income individuals” by 5%.
According to the Cointelegraph report the draft law also recommends a surcharge of 3.8% on net investment income, which increases the tax rate for certain investors to 28.8%.
What’s more the new tax plan will introduce the laundry sale rule for cryptocurrencies and other digital assetsthat prevents investors from claiming capital gains deductions. For now, US lawmakers suspect that crypto investors are using wash sales to manipulate capital gains from their portfolios.