Infrastructure Bill IRS $10,000 Bitcoin

According to Publication 1544 of the U.S. Internal Revenue Service (IRS), any person who receives more than $10,000 in cash in 12 months due to a trade or business must report it to the IRS and the Financial Crimes Enforcement Network (FinCEN) on Form 8300. However, the new Infrastructure Bill aims to extend that requirement to Bitcoin and other cryptocurrencies at large. If enacted, this legislation will require any U.S. person receiving over $10,000 in cryptocurrency to report the sender’s personal information, including Social Security Number (SSN), to the authorities.

The current demands are elicited by section 6050I and contemplate a reporting requirement for cash transactions above $10,000 received in a trade or business. Late, incomplete, inaccurate, or missing reports all result in penalties. Civil penalties for that section, which start at $25,000, can be imposed before a day in court. In contrast, “willful” violations of these reporting requirements in section 6050I entail maximum imprisonment of five years.

“Drug dealers and smugglers often use large cash payments to ‘launder’ money from illegal activities. The government can often trace this laundered money through the payments you report. Your compliance with these laws provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities,” publication 1544 said, regarding the reason why these reporting requirements exist.

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