Democratic Senators Elizabeth Warren, Bernie Sanders, Bob Casey, and Richard Blumenthal, along with other lawmakers in the United States, are urging the Internal Revenue Service and the Treasury to expedite the closure of tax loopholes exploited by “crypto tax evaders.”
In an August 1 letter, the senators issued a warning, urging the agencies to promptly implement new tax regulations to tackle the alleged “$50 billion crypto tax gap.”
The Senators emphasized that a delay in updating tax policies could result in the IRS and Treasury losing out on around $1.5 billion in tax revenue for the 2024 financial year.
The senators are referring to the new tax laws outlined in the Senate’s $1.2 trillion infrastructure bill, passed in August 2021. The bill aimed to increase tax reporting requirements for businesses that act as crypto brokers.
However, despite being ratified, the Treasury and the IRS are yet to release their new tax rules. And while they have until Dec. 31 to publish and implement the rules, the lawmakers are requesting an earlier implementation.
In addition, Elizabeth Warren, an outspoken critic of the cryptocurrency industry in the US., has formed an “anti-crypto army” as the centerpiece of her Senate re-election campaign. Sanders, though less publicly vocal on crypto, has co-signed several letters with Warren, seeking tighter restrictions on the space.
According to a recent poll commissioned by Grayscale Investments, a majority of both Democrats (59%) and Republicans (51%) view cryptocurrency as the future of finance. This indicates that Elizabeth Warren’s stance on crypto may not resonate with the majority of the population and may not be perceived as a vote-winner among the electorate.