A bipartisan bill recently introduced in the US Senate sought to remove the requirement for Americans to disclose capital gains or losses on most smaller-scale cryptocurrency transactions.
Introduced by Senators Patrick Toomey and Kyrsten Sinema, the Cryptocurrency Tax Fairness Act would exempt reporting of crypto transactions of less than $50 or businesses where a person earned less than $50.
At the moment, there is another similar bill going through Congress, the Responsible Financial Innovation Act, which would remove the obligation to provide information on cryptocurrency earnings of $200 or less to the Internal Revenue Service.
Currently, IRS regulations state that even the smallest of crypto transactions can amount to a capital gains event.
The recently introduced bill is a companion piece to the Virtual Currency Tax Fairness Act reintroduced in the House of Representatives earlier this year, which specified a capital gains exemption on cryptocurrency transactions with realized gains of less than $200. direct change to the current IRS tax code.
According to a statement made by the authors themselves, the main scope of the project is to expand the use of cryptocurrencies.