White House Reviews Proposed IRS Rule to Tax Americans' Foreign Crypto Accounts

The White House is currently reviewing proposed rules from the Treasury Department that would enable the IRS to access data on Americans' foreign cryptocurrency accounts. This initiative is part of the United States' potential participation in the global Crypto-Asset Reporting Framework (CARF), which aims to combat offshore tax evasion through automatic information-sharing among member countries. Most G7 nations and several major financial hubs, including Singapore and the Bahamas, have already adopted CARF. The framework, introduced by the Organization for Economic Cooperation and Development in 2022, allows for the efficient tracking of citizens' crypto holdings to prevent tax evasion. Advisors to President Donald Trump support joining CARF to deter U.S. taxpayers from relocating their crypto assets abroad. The proposed tax reporting rules are now under the scrutiny of the President's advisors, which marks a significant step towards possibly finalizing the U.S.'s involvement in this international reporting framework.

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