Congress Should Authorize IRS to Collect Information from Crypto Industry - US Tax Chief

WASHINGTON (Pakistan Point News / Sputnik - 08th June, 2021) The US Congress needs to give tax collectors clear authority to collect information from the cryptocurrency industry, Internal Revenue Service Commissioner Charles Rettig said Tuesday as the use of digital payments for ransom increases authorities' pursuit of the dark industry.

"Most crypto, virtual currencies are designed to stay off the radar screen," Rettig said during a Senate Finance Committee hearing. "We get challenged frequently, and to have a clear dictate from Congress on the authority of us to collect that information is critical."

The IRS chief's remarks came a day after Colonial Pipeline, which operates the largest US fuel delivery network, said government investigators recovered most of the $4.4 million ransom in cryptocurrencies that the company paid in May to free its pipeline from digital hackers.

Separately, the Biden administration has proposed laws requiring cryptocurrency brokers, including exchanges, to report information on their customers, including on indirect foreign investors.

Businesses should also report when they receive crypto assets valued at more than $10,000, just like how they would with regular Currency, the administration says.

Rettig said the IRS currently issues summonses to third parties to get information on cryptocurrency users.

The agency is also active in both civil and criminal enforcement of virtual currencies, but needs more tools and resources, especially Congress authorization to collect information, he said.