US legislature introduces bill to protect IRS ‘forked assets’

The representative from Minnesota, Tom Emmer reintroduced a bill designed to prevent the IRS from imposing fines or fees on crypto taxpayers with forked assets.

In an Emmer announcement on Monday, the Minnesota Congressman said he had reintroduced the Safe Haven Bill for Taxpayers with Bifurcated Assets in the US House of Representatives. S.If the bill were passed in its current state, it would create a safe haven for cryptocurrency holders with forked assets and allow them to be non-taxable events. In addition, these terms would remain in place until the Internal Revenue Service provides “clear and consistent guidelines for managing these transactions”.

“Like any other federal agency, the IRS must keep up with the rapid pace of technology or risk losing America’s innovation leadership,” said Emmer. “Taxpayers who suffer from a lack of tax advice are wrongly penalized for investing in an emerging technology. What the IRS has released to date is not pragmatic and has not endorsed the technology or those who study it . “

US legislature introduces bill to protect IRS ‘forked assets’
US legislature introduces bill to protect IRS ‘forked assets’

Added:

“We should take advantage of emerging technologies and put in place a clear regulatory system that allows innovation to flourish in the US. A safe haven will protect taxpayers until the IRS takes steps to improve its guidelines.”

The deadline for filing taxes in the United States was May 17, after the normal due date was extended to mid-April. Cryptocurrency users who HODLE their fortunes in the US often do not have to pay taxes on them, but in general anyone who transfers tokens, exchanges them for fiat money, or receives digital currencies due to a diversion must report such transactions to the IRS. According to Emmer, taxpayers who receive a split digital currency “may not be aware of this new tax burden”.

Emmer, a Republican, first introduced the bill in 2018 and again the following year in a Democrat-run House of Representatives, but whose executive was run by Republicans. Both times, The bill was referred to the House Ways and Means Committee and no further action was taken. This would be the first time his bill faces a House, Senate, and Presidency where the Democrats are in control.

The safe haven bill for taxpayers with ramified assets is backed by the Digital Chamber of Commerce, cryptocurrency nonprofit Coin Center, the Blockchain Association, and Democrat Darren Soto, a Florida Ninth District representative.

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