The US Treasury Department is detailing a set of new tax compliance measures designed to bring in billions in new revenue - and crypto investors are a key target.
The measures are part of President Biden's American Families Plan and are designed to help fund the $1.8 trillion proposal to reform childcare, education and paid family leave. The plan would essentially double the number of employees at the Internal Revenue Service by 2031 in an effort to raise $700 billion from wealthy individuals who may be holding funds offshore or using sophisticated efforts to hide income. It
requires banks and financial institutions to reveal "aggregate account outflows and inflows" of their customers. Details on exactly how much information companies will be required to hand over have not been released. The
plan also includes "additional resources" to address the growth of cryptocurrency and would give the agency the tools it needs to responsibly enforce the emerging digital asset industry. The agency says the IRS needs to significantly update its technology to properly enforce the crypto economy.
Last year, the Treasury first detailed efforts to step up crypto enforcement by requiring financial institutions to report when customers send or receive $10,000 or more in cryptocurrency.
