US Congress Weighs Penalty Relief for Voluntary Disclosure of Crypto Tax Violations
Summary
- The US Congress is pushing to introduce a system that would reduce penalties for voluntary disclosure of tax violations related to digital assets (cryptocurrencies).
- Under the Digital Asset Tax Certainty Act (H.R.10357), taxpayers could qualify for reduced penalties if they complete a voluntary disclosure within 12 months after the law takes effect and pay unpaid taxes and interest.
- The bill passed the House Ways and Means Committee by a 38-5 vote and would still need approval from the full House and the Senate, as well as the president's signature, before it can take effect.
Forecast Trend Report by Period
The US Congress is considering a program to reduce penalties for taxpayers who voluntarily disclose tax violations related to digital assets, or cryptocurrencies.
Cointelegraph reported on October 19 that the Digital Asset Tax Certainty Act, H.R.10357, now under discussion in Congress, includes a provision to introduce a voluntary disclosure program for crypto-related tax issues.
The bill requires the US Treasury Department to establish the program within 12 months of the law taking effect. Taxpayers would need to file amended returns and prove that any crypto-related tax violations were not willful.
They could also qualify for reduced penalties if they complete the voluntary disclosure within 12 months after the law takes effect and pay any unpaid taxes and interest.
The measure previously passed the House Ways and Means Committee by a 38-5 vote. It would still need approval from the full House and the Senate, followed by the president's signature, before it can take effect.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.