A bill for tighter digital currency tax reporting has been proposed by an Ohio senator.
According to reports, a Republican senator in Ohio is drafting bills that would impose tighter regulations on digital currency transactions in order to deter tax evasion.
Senator Rob Portman said he hoped the bill would get bipartisan support as a measure to combat the issue of undeclared cryptocurrency trade profits in the latest example of the proposed toughening of the laws surrounding digital currency revenue.
According to IRS statistics, between 2011 and 2013, 83.6 percent of taxes were recovered “voluntarily and on schedule,” according to IRS statistics. However, this represents a loss of up to $400 billion over the era, and it is expected that taxable crypto profits will be disclosed to the authorities even less regularly in the future.
IRS Commissioner Charles Rettig expressed support for the measure, saying that clarifying reporting provisions in the legislation would “absolutely” assist in reducing the tax deficit.
Rettig went on to say that certain aspects of the cryptocurrency industry remain opaque “by nature,” implying that regulation to increase clarity around taxable cryptocurrency profits was required.
Before starting its legislative process, the bill will take some time to bring together.