Biden's IRS Plans Could Boost Crypto Adoption

[jaysabi]

Yes, I believe that no safe haven in crypto is real, I just wonder if their government is ready for a decentralized system. as we know that the government likes centralized systems with easier control and implementation. but let's see what they will do, because the value the OP mentioned is quite huge, if it can't be handled properly it could be the best jokes in history

It will just lead to more and more harassment for the tax payer. IRS is properly funded and doesn't need anymore funds. Those who are paying their taxes will continue to do so and those who are evading their taxes will do that. Just because $80 billion is given to the IRS, there is no guarantee that suddenly the tax collection is going to increase. Democrats got their power after 4 long years and they seems to be in a hurry to print banknotes. Biden has stated that his "American Families Plan" will cost the treasury some $6 trillion. I am not sure whether the American economy will be able to survive such a massive increase to the federal debt. At this point I have only one advice to the cryptocurrency holders - keep your BTC safe and secure. You will need them soon.

The underlined text is definitely false. The republicans have been cutting IRS funding and staffing for years to make the agency as ineffective as possible. The bolded text is exactly the problem, those evading taxes they owe will continue to do so unless the IRS is granted the ability to bring these scofflaws to justice. And the italicized text is a joke. Everyone knows that more IRS funding will definitely increase compliance and increase compliance, it's exactly the same reason republicans have targeted the agency to shrink its ranks.

[zanezane]

Anyway, Biden's plan supposedly only affects the top 1% or big corporations, right? No chance they will risk fines/jail time by using crypto.

The 1% that we are talking about are notorious for escaping punishment and having their sentences lenient. I have no hope that Biden's government is going to be any different to the previous administration, most of the high ranking in the administration are in the 1% and also the 1% has a big contributor to the administration in terms of lobbying.

[jaysabi]

Anyway, Biden's plan supposedly only affects the top 1% or big corporations, right? No chance they will risk fines/jail time by using crypto.

The 1% that we are talking about are notorious for escaping punishment and having their sentences lenient. I have no hope that Biden's government is going to be any different to the previous administration, most of the high ranking in the administration are in the 1% and also the 1% has a big contributor to the administration in terms of lobbying.

In the case of audits, it's time-consuming and expensive to go after people who are rich because they have access to legal counsel that can really slow down the process and drag it out. The IRS goes after low hanging fruit because it's easier and more cost-efficient given their limited man power.  That's where boosting IRS resources is really going to pay off in the long run as it will allow the IRS to go after the richer people who are shafting the government much more in unpaid taxes.