The digital currency lawyer, MetaLawMan, has spoken up against what he sees as biased monitoring of American citizens who are required to pay taxes on cryptocurrency transactions in the future. Given the adjustments in the American tax filing process, MetaLawMan highlighted certain provisions that could potentially affect approximately 50 million crypto owners.
Changes on Crypto Tax New Filing System
As per MetaLawMan’s explanation, the initial question on the IRS Form 1040 is located beneath the filing status heading at the top of the page. This question inquires: “What is your filing status?
“At any time during 2024, did you:
(a) receive (as a reward, award, or payment for property or services); or
Dispose of, trade, or transfer ownership of a digital asset (or a stake in a digital asset?) in some manner.
The question appears to be probing if the taxpayer has reported any profits from cryptocurrency transactions. However, it seems this inquiry is not universally applied as traditional taxpayers handling gold, stocks, property, etc., are not typically questioned in a similar manner.
Time to Stop the Hyper-Surveillance of Lawful Digital Asset Holders in the U.S.
What do I mean?
IRS Form 1040 poses this question near the top of page one–right under Filing Status:
“At any time during 2024, did you:
(a) receive (as a reward, award, or payment for property…— MetaLawMan (@MetaLawMan) January 16, 2025
MetaLawMan asserts that this situation represents unusual scrutiny over the cryptocurrency sector, something he believes requires rectification. Notably, he called out the Crypto and Artificial Intelligence Leader, David Sacks, during a broader campaign advocating for transparency and responsibility within the industry.
Controversial IRS Position
The origin of this monitoring system can be traced back to a previous dispute over tax regulations for Decentralized Finance (DeFi) brokers, which the Internal Revenue Service (IRS) introduced in December. According to these new guidelines, crypto exchanges, including DeFi platforms, were required to disclose user transactions to the regulatory body.
Due to a high need, particularly within the decentralized exchange community, the DeFi Education Fund found it necessary to file a lawsuit against the IRS. This legal action has garnered backing from various elements within the cryptocurrency sector, with numerous voices advocating for its revocation.
Last year, the U.S. Internal Revenue Service (IRS) and the Treasury Department expanded their contentious standpoint to encompass crypto staking services. In a further controversial step, the market regulator proposed taxing gains from crypto staking a year ago.
Bringing Clarity to the US Treasury
With an aim to enhance the monitoring of cryptocurrency taxes for investors, there’s much anticipation centered around potential modifications from the U.S. Treasury, given the current administration of President Donald Trump.
Previously, Trump announced that he intends for Scott Bessent to head the Department of the Treasury. Known as a supporter of cryptocurrencies, Bessent is anticipated to bring significant shifts in policy, such as possibly revoking SAB-121 accounting regulations and providing more transparency regarding tax issues.
So far, Senator Elizabeth who is against cryptocurrencies has asked for tough regulations on them. It’s yet unclear if he will choose to follow that route.
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2025-01-16 21:06