IRS chief asks Congress for authority and resources to regulate cryptocurrencies

Washington Examiner ^ | 6/8/2021 | Nihal Krishan

[Mount Athos]

Internal Revenue Service Commissioner Charles Rettig on Tuesday asked Congress for new authority and resources in order to regulate cryptocurrencies for better tax collection and to avoid frauds and scams.

Rettig asked for the new measures during a Senate Finance hearing Tuesday to examine President Joe Biden's 2022 budget proposal, which calls for $41 million to expand anti-cybercrime efforts and $32 million for cryptocurrency-related enforcement operations and additional tax information reporting for businesses that receive cryptocurrency that has a fair market value of over $10 million.

“I think we need congressional authority. We get challenged frequently and to have a clear dictate from Congress on the authority of us to collect that information is critical," Rettig said in response to a question from Republican Sen. Rob Portman of Ohio.

“The most recent market capitalization in that world, the crypto world, exceeded $2 trillion and more than 8600 exchanges worldwide,” he added.

Rettig said that most virtual currencies, such as Bitcoin or Ethereum, are designed to being hidden and difficult for the IRS to track.

Most cryptocurrency transactions are pseudoanonymous because they obscure the identity of those trading coins, but the blockchain technology that enables cryptocurrencies uses a public ledger that allows for less privacy than some may realize.

In 2019, under Trump, the IRS budget called for a reduction in staffing of 2,200 employees. Rettig's budget request for fiscal year 2020 planned to eliminate an additional 1,800 employees.

Biden's IRS budget asks for least 5,000 new personnel to be hired for tax enforcement purposes, with 15% increases in hiring every year.

[Hambone 1934]

UH-OH...Death to bitcoin is coming

[Nateman]

Sooner or later the greedy hand of the Swamp was guaranteed to want a piece of the action that wanted no part of them.

[MercyFlush]

The point of crypto is they’re beyond the reach of the governments who take orders from the banking cartels.

Do what you want, IRS, crypto will just hide better.

[Vermont Lt]

The IRS can work on the tax side. It has no authority to regulate anything.

The question is that there is no department that should “regulate” it.

Again….people who don’t know what they are talking about. Discussing cryptos with IRS agents is a frustrating experience because of their ignorance of basic computer systems, the concept of money or how value is transferred.

Ignorance of cryptos is stunning.

[G Larry]

Ya, but many thought this was a done deal, which means there's a window of opportunity for some to make unreported profits.

This won't be a stand alone bill and they've got to be concerned about what legislation they tie this to, because many of their fascist Bills won't get to Biden's desk.

[escapefromboston]

What’s Superman’s dog got to do with digital currency?

[Lurkina.n.Learnin]

How did we all survive the unregulated wampum era?

[neverevergiveup]

“Ignorance of cryptos is stunning.”

Well, considering the technology involved and what people are used to with respect to currency, it isn't 100% straight forward. People are also ignorant about good old fashioned currency, and what it actually represents.

[C210N]

What’s Superman’s dog got to do with digital currency?

[Chode]

it was replaced with $24 worth of beads and trinkets

[Joe Brower]

Perhaps of interest.

[SES1066]

I smell 1933 coming! That was when FDR, 5 April 1933, banned the private ownership of gold. Executive Order 6102 required U.S. citizens to deliver on or before May 1, 1933, all but $100 valuation of gold coin, all gold bullion, and any gold certificates owned by them to the Federal Reserve, in exchange for $20.67 per troy ounce (to). Two years later, 1934, the US Government REVALUED its holding of gold to $32/to, an increase of almost 55%, surprise!

That lasted till Gerald Ford graciously allowed private citizens to own that obscene store of value once again. Executive Order 11825, 31 December 1974 but by then the $32/to valuation used by the Federal Government to settle foreign debts, aka the "Gold Standard", had been dead and buried. 1975 saw gold prices between $195 & $130, a reflection on the brewing inflation cycle to come.

[Vermont Lt]

They better start learning or they are going to be shocked when their Social Security is so debased that it won’t buy enough food for a week.

I know that sounds harsh— but the blind obedience to everything red white and blue is going to have them living on the streets.

The government is not looking out for you or me. I don’t need them protecting me from my own decisions.

Anyway, if the past few weeks haven’t taught us that the government is full of liars, I guess people will not be shocked when we suffer some “setbacks” later this summer.

[IC Ken]

Talk about being between a rock and a hard place. I do trust cryptocurrency as much as I do not trust the government or the IRS. Them getting married smells of a disaster.

[Bones75]

There’s money that they can’t get their hands on, and that can’t be allowed to stand.

[neverevergiveup]

The government is not looking out for you or me.

Of course not. Government is where pathetic narcissists go to search for personal stature. The only 'service' involved is the servicing of their egos.

Social Security is just another tax, wherein the government takes your money and puts it into a big pool of money that gets used for a ton of purposes other than the personal 'security' of those who have paid in to it. If it really was 'your money' that the government just took care of and invested for you, you would be able to give that money to your children.