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Infrastructure Bill Passed Without Crypto Tax Amendment

Just over two weeks ago, the proposal was set out by the U.S. Senate to include huge tax requirements on the cryptocurrency industry. The Infrastructure bill had a very generalized statement to include almost everyone in the industry and make them submit Form 1099’s to the IRS.

Of course, that created a wave of selloffs of Bitcoin, dropping the price below $40k. However, now that the Infrastructure bill has finally passed, it happened without the crypto tax amendment.

The primary issue, it seems, is the uncertainty revolving around the term “Broker,” as the crypto community believes the statement is too broad.

Who Seemed to be Targeted?

The definition of “broker” in the bill is:

“any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person,”

That could target almost everyone other than single investors. For example, if you are a miner, developer, staking provider – or anyone else who provides a service within the cryptocurrency realm.

What is the Issue?

Some people may be thinking, what is the problem? If there is a requirement to fill out Form 1099, then you should comply.

The issue is slightly more complex than that, though.

Form 1099 is designed for those people who have customers, and all of the above do work without knowing the end customer. Therefore, there is no information available to them to fill the form correctly.

What’s Next?

Bloomberg reports that we could see a clarification of the word “Broker” as soon as next week.  However, there is still a little uncertainty, as the plan allows an exemption to those who do not act as brokers.

Although, with no blanket exemption based on business identification, it is likely that every business in the country will need to prove their work and how they operate to the IRS. While that may seem simple enough, we cannot believe that it will be a one-time operation, and yearly or six-monthly checks are more likely – although that is only our personal opinion.

Bitcoin Brice Increase

Since the 2nd of August, when BTC dropped below $40k because of the bill, we saw a couple of days of uncertainty, with the price hovering around $38k. From the 5th, though, the tides have turned, and BTC has risen to over $46,000, with the price still increasing.

Maybe we will even see it break the $50,000 line again soon.

Cryptocurrency news enthusiast with a passion for writing and providing information to people.

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