Senators Seek To Amend Bitcoin Reporting Changes In Infrastructure Bill

A bipartisan team of US senators is introducing a bill to clarify what entities should report cryptocurrency transactions to the IRS.

• A bipartisan team of U.S. senators is introducing a bill to restrict tax reporting rules present in the infrastructure bill, which is set to become law today.
• The infrastructure bill’s text extends cash-focused section 6050I to contemplate cryptocurrency transactions.
• “The new bill includes a provision that would make it retroactive to the infrastructure bill’s signing,” Bloomberg reported.

U.S. senators Ron Wyden, chairman of the Senate Finance Committee, and Cynthia Lummis are introducing a bill to amend tax reporting requirements in the infrastructure legislation set to become law on November 15, Bloomberg reported.

“The new bill, the text of which was obtained by Bloomberg News, seeks to override a provision in the infrastructure legislation that cryptocurrency investors say is overly broad and would stifle growth of digital currencies,” per the report.

In September, a tax change introduced in the infrastructure bill would require U.S. persons receiving over $10,000 in bitcoin and cryptocurrency to report the sender’s personal information to the Internal Revenue Service (IRS), extending the provisions of section 6050I that currently only apply to cash transactions.

“Our bill makes clear that the new reporting requirements do not apply to individuals developing blockchain technology and wallets,” Wyden said in a statement, per the report. “This will protect American innovation while at the same time ensuring those who buy and sell cryptocurrency pay the taxes they already owe.”

The new bill seeks to restrict the interpretation of the entities these requirements would apply to and protect innovators such as miners and developers in the U.S.

“It’s not yet clear when the crypto reporting bill could come up for a vote, or if it could be included in other year-end legislative packages in coming weeks. The bill includes a provision that would make it retroactive to the infrastructure bill’s signing,” per the report.