IRS Commissioner: "NFTs can be used for tax evasion" – Bits Media

Charles Rettig fears, that taxpayers use non-fungible tokens (NFT) for tax evasion and called the NFTs "invisible to the IRS".

During the performance
on the US Senate Finance Committee, Internal Revenue Service Commissioner (IRS) Charles Rettig (Charles Rettig) raised the question of the role of NFT in tax evasion. To the question, Will improved claims for cryptocurrency reports to close the tax gap, evaluated in $1 trillion, Rettig noted, that the world of cryptocurrencies "constantly changing". According to him, Undeductive tokens “essentially are collecting items in the cryptocurrency world. These elements are not visible [IRS] Because of their design ".

Rettig informed the financial committee, that the United States is losing about $1 TRLN in tax payments, Partly due to a sharp growth in cryptocurrencies, which the agency is difficult to track and tax. According to the current legislation, IRS taxes cryptocurrencies as capital. It means, that cryptocurrency holders are required to pay capital tax, If they sell their cryptocurrency to make a profit or use it to make a purchase.

NFT – This is a tokenized version of a digital or real asset, in one copy. In recent months, the popularity of NFT has increased sharply: Brands and celebrities release their own digital collecting items in the form of NFT. US Tax Service will be more interested in the amount of money, entering the industry NFT, since individual tokens are sold
For millions of dollars.

Rettig also noted, that "reporting on cryptocurrencies will be important". The other day, an expert on blockchain of the World Economic Forum (WEF) stated, that the regulators of the financial sector are ready to significantly activate in the regulation of the cryptocurrency industry. The end, how the cryptocurrency market is growing, regulators receive more and more signals about the need to involve the sector.

AND, Judging by the recent activities of regulatory authorities, Her fears are justified. Last year, IRS has added
point about cryptocurrencies in the main part of the tax reporting form, And at the end of last year, a network of US financial crimes (FinCEN) Offered
To oblige banks and financial institutions to provide reports on transactions from any cryptocurrency wallets. In March, the Commissioner of the Commission on Securities and Exchange of the United States (SEC) Esther Pierce (Hester Peirce) warned, that NFT in some cases can be considered as securities.