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Crypto Think Tank Sues IRS Over "Unconstitutional" Tax Reporting Requirement

Crypto Think Tank Sues IRS Over "Unconstitutional" Tax Reporting Requirement

Last updated 5th Aug 2022
Disclosure
  • IRS chief Charles Rettig and Treasury Secretary Janet Yellen are both named as defendants
  • US taxpayers receiving more than $10k in crypto must report the sender’s personal data

Coin Center, a cryptocurrency think tank, is suing the IRS and the US Treasury Department over a crypto tax reporting requirement they deem "unconstitutional," CoinDesk reported. IRS chief Charles Rettig and Treasury Secretary Janet Yellen are both named as defendants in the lawsuit.

Reporting requirement when receiving over $10k in crypto

The requirement, which will come into force in 2024, requires US taxpayers receiving more than $10,000 in cryptocurrency to report the sender’s personal data, including their social security number.

Controversial provision fell through

The provision was one of a few enshrined in a 2021 infrastructure bill, which also required brokers to report crypto. This provision provoked massive industry backlash and ended up falling through.

The lawsuit documents state:

The reporting mandate would force Americans using cryptocurrency to share intrusive details about themselves, both with each other and with the federal government. Under the terms of the mandate, everyday senders and receivers of cryptocurrency would be forced to reveal their names, Social Security numbers, home addresses another personal identifying information.

The think tank is worried that the provision will mandate Americans to hold sender data for up to a year in case regulators deem any certain set of transactions "related." This is if the total sum exceeds $10,000.

Daniela Kirova

Daniela Kirova

Daniela is a writer at Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. She has over 15 years of experience as a writer, having ghostwritten for several online publications in the financial sector.