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

The White House is currently examining proposed rules from the Treasury Department that would enable the IRS to access data on Americans' foreign cryptocurrency accounts. This initiative is linked to the United States' potential participation in the global Crypto-Asset Reporting Framework (CARF), which aims to combat tax evasion through the automatic exchange of information about citizens' crypto holdings among member countries. The CARF has already been adopted by many nations, including G7 members and various crypto-friendly jurisdictions. Advisors to former President Trump have expressed support for the U.S. joining CARF, believing it would dissuade taxpayers from relocating their cryptocurrencies abroad. The review process began following an official recommendation to impose these rules earlier in the year, highlighting a shift towards more stringent regulations regarding cryptocurrencyholdings.

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