White House moves closer to allowing IRS to surveil international crypto transac

[zasad@]

White House moves closer to allowing IRS to surveil international crypto transactions
https://www.theblock.co/post/379131/white-house-moves-closer-to-allowing-irs-to-surveil-international-crypto-transactions

"In a July report released by the White House, there was a recommendation to the IRS and Treasury to consider proposing rules to implement a global standard to improve tax compliance.
Now, the White House is reviewing a proposed rule that would grant the Internal Revenue Service access to information on U.S. taxpayers’ digital asset transactions conducted in foreign jurisdictions.
 


The White House is reviewing a proposed rule that would grant the Internal Revenue Service access to information on U.S. taxpayers’ digital asset transactions conducted in foreign jurisdictions.

The rule was received by the Office of Information and Regulatory Affairs on Friday. The office is part of the Office of Management and Budget, which reviews federal regulations and policies to ensure that rules align with the president's priorities.

This comes after the White House released a wide-ranging digital asset report over the summer that addressed several issues, including how crypto should be regulated. In the report, there was a recommendation to the IRS and Treasury to consider proposing rules to implement the Crypto-Asset Reporting Framework (CARF). CARF is an international standard that looks to improve tax compliance by requiring digital asset providers to report specific transactions to regulators, according to the report. "

[Z-tight]

I have read the source of the information and this is the reason why they want to implement the crypto asset reporting framework:

U.S. regulations implementing CARF would discourage U.S. taxpayers from moving their digital assets to offshore digital asset exchanges

I do not know in what numbers U.S. taxpayers move their cryptocurrencies to foreign exchanges to sell them. I believe they do this to escape paying taxes on them in the U.S. The source does not carry all answers to the questions i have, but the news reads that CARF would require crypto asset providers to report 'specific' tx's, but there is no information on the type of tx's they are talking about.

[zasad@]

OECD Crypto Tax Reporting Framework Set to Transform Global Transparency with Historic 2026 Launch
https://www.mexc.com/news/376052

"Understanding the OECD Crypto Tax Reporting Framework (CARF)
The OECD developed CARF specifically to address the tax transparency challenges posed by the borderless nature of crypto-assets. Historically, tax authorities struggled to track cryptocurrency transactions that easily crossed international boundaries. The framework directly targets this regulatory gap. Under CARF, crypto-asset service providers, including exchanges, brokers, and certain wallet providers, must identify their customers’ tax residencies. Furthermore, these entities must collect and report detailed financial data annually.

The required information includes:

Customer Identification Data: Names, addresses, dates of birth, and Tax Identification Numbers (TINs).
Tax Residency Information: Jurisdictions where the customer is a tax resident.
Financial Activity Data: Gross proceeds from crypto-asset sales and exchanges.
Account Balance Information: Year-end holdings and values of crypto-assets.
This collected data will then flow through existing international information exchange networks, primarily the Common Reporting Standard (CRS) infrastructure. Therefore, a Japanese tax authority could automatically receive reports about a resident’s trading activity on a French-based exchange. This system creates a global web of financial transparency specifically designed for the digital asset era."

[YOSHIE]

White House moves closer to allowing IRS to surveil international crypto transac

Legally, we know that the IRS (Internal Revenue Service) is one of the tax law enforcers that is collected from federal income, whether it is taken from individuals or from companies, In my opinion, I also think the approach to monitoring crypto transactions internationally is good.

At least if the IRS tax laws were active internationally, it might limit or be able to audit illegal transactions that occur internationally, like what terrorists and other prohibited organizations do, the point is that they should not collect taxes from crypto transactions or related exchanges, if this is done this will be a new negative approach that occurs on exchanges, Crypto wallets that exist or will become a new problem in the crypto environment.

[zasad@]

White House moves closer to allowing IRS to surveil international crypto transac

Legally, we know that the IRS (Internal Revenue Service) is one of the tax law enforcers that is collected from federal income, whether it is taken from individuals or from companies, In my opinion, I also think the approach to monitoring crypto transactions internationally is good.

At least if the IRS tax laws were active internationally, it might limit or be able to audit illegal transactions that occur internationally, like what terrorists and other prohibited organizations do, the point is that they should not collect taxes from crypto transactions or related exchanges, if this is done this will be a new negative approach that occurs on exchanges, Crypto wallets that exist or will become a new problem in the crypto environment.

The Foreign Account Tax Compliance Act (FATCA) has been in place for a long time. The UK, France, Germany, Canada, and other countries

FATCA was enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts.
https://home.treasury.gov/policy-issues/tax-policy/foreign-account-tax-compliance-act

[The Bitcoin Act]

We already have:

FATCA, which forces foreign banks and institutions to report U.S. persons’ accounts or face exclusion from U.S. financial markets.

CARF (Crypto-Asset Reporting Framework), which is the global crypto analogue, automatic exchange of crypto transaction data between tax authorities. The U.S. has NOT formally adopted CARF yet. But U.S. platforms may still collect CARF-style data if operating in CARF countries. Under CARF, platforms are required to collect and report user identity information such as legal name, address, jurisdictions of tax residence, taxpayer identification numbers, and date of birth, along with account details like wallet addresses or platform account identifiers linked to that user. They must also report transaction-level data, including transfers in and out (even when interacting with self-custody wallets), the type of crypto-asset involved, and the date and fiat-value of each transaction, plus counterparty information where available, such as the receiving or sending platform or jurisdiction. That information is then automatically exchanged between participating countries’ tax authorities.

CRS (Common Reporting Standard): Global bank and financial account data exchange between tax authorities. Most countries participate. The U.S. does not, it uses FATCA instead. The key difference is scope and data type: CRS focuses on custodial financial accounts and financial income, such as account balances, interest, dividends, and proceeds from the sale of financial assets, reported by banks and brokers. It does not require the granular, transaction-by-transaction transfer reporting or wallet address linkage that CARF introduces for crypto. In other words, CRS tracks where money is held and what income it generates, while CARF tracks how crypto moves and between whom.