Arab Press

بالشعب و للشعب
Saturday, Aug 02, 2025

Biden Targets Crypto Tax Evaders in Global Data-Sharing Pitch

Biden Targets Crypto Tax Evaders in Global Data-Sharing Pitch

The Biden administration has proposed requiring the collection of data on foreign cryptocurrency investors active in the U.S., aiming to bolster international cooperation to help in a broader crackdown on tax evasion.

The Treasury Department, in its “Greenbook” of revenue proposals released last Friday, proposed a requirement for cryptocurrency brokers, such as exchanges and hosted-wallet providers, to provide information to the IRS on foreign individuals indirectly holding accounts with them.

“They clearly feel that right now there’s a blind spot for foreign owners,” said Jorge Castro, a tax attorney at Miller & Chevalier Chartered who previously worked at the IRS and as a Democratic tax counsel on Capitol Hill. The proposal addresses “certain passive entities and their substantial foreign owners,” the Treasury said.

The U.S. could then provide that information to foreign governments and, in exchange, receive information on any U.S. individuals concealing cryptocurrency assets and dodging their U.S. tax liabilities by using offshore exchanges and wallet providers.

The move, which would require congressional legislation, is part of a campaign by President Joe Biden’s administration to strengthen tax enforcement to help pay for trillions of dollars of proposed longer-term spending programs. It also coincides with the Treasury’s engagement with counterparts around the world to set a global minimum tax for corporations.

Widening Concerns


Officials say cryptocurrencies have served as a significant contributor to the growing tax gap — the difference between taxes owed and actually paid on time — that Internal Revenue Service Commissioner Charles Rettig has estimated may exceed $1 trillion a year.

There may also be a cyber-security element. White House Press Secretary Jen Psaki said Wednesday that expanding analysis of cryptocurrencies is one of the steps the administration is taking to help curb cyber attacks.

The Greenbook proposal would be a continuation of information exchanges the U.S. already conducts with foreign governments to uncover U.S. citizens hiding assets offshore in undisclosed foreign bank accounts, said Charles Kolstad, a partner at international law firm Withers.

The Blockchain Association, whose members include trading platforms that would be subject to the new reporting requirement, declined to comment. Cryptocurrency exchanges Kraken and Coinbase didn’t return requests for comment.

The proposal to require reporting on foreign owners seems aimed at those who set up shell companies in the U.S. to transact in cryptocurrency, said former IRS Chief Counsel Michael Desmond, who’s now a partner at Gibson, Dunn & Crutcher LLP.

The IRS’s Criminal Investigation division has already been working with agencies in other countries — Australia, Canada, the U.K. and Netherlands — to pursue global tax cheats, including those using cryptocurrency. To the extent permitted under each country’s laws, the agencies share information and coordinate efforts.

“The global nature of the crypto market offers opportunities for U.S. taxpayers to conceal assets and taxable income by using offshore crypto exchanges and wallet providers,” the Greenbook proposal said.

The Treasury, prior to the start of this year, was already working on proposed regulations under existing law that would require cryptocurrency brokers to report certain information to the IRS, including the identities of their customers and the gross proceeds from sales.

Account Flows


The Greenbook suggests that project can still move forward through the regulatory process, but the new requirement on indirect foreign investors will need to be added legislatively, according to Lisa Zarlenga, a partner at Steptoe & Johnson LLP and former Treasury tax legislative counsel.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
×