Charles Rettig, the current commissioner of the IRS, requested the Senate Finance Committee to provide the agency with congressional authority over the regulation of cryptocurrencies. Rettig then called out present lawmakers for having the initiative to address the growing problem of crypto-holding US residents not paying any taxes.
According to the IRS commissioner, the explicit authority over crypto regulation is essential for them to possess in today’s day and age. He adds that virtual currencies had become so well-used today that it is now among the most extensive market caps worldwide – exceeding over $2 trillion recently. That makes it so that it is now much harder to regulate, especially due to its core design of keeping anonymity. Thus, explaining Rettig’s plea for congressional authority.
Notably, Rettig’s remarks came after he was questioned by Senator Portman (R-OH) whether or not the IRS, as it is now, has the capability to regulate crypto fully. Rettig responded by stating that they would most likely need congressional authority to do so. According to Rettig, while the IRS requires additional tools, it is essential for them to have additional resources.
As per the IRS tax-related report last October 2020, over 83.6% of taxes were settled voluntarily and on time from 2011 to 2013. That being said, the Treasury Department estimates that such a tax gap could potentially reach $7 trillion in total over the next decade or so should the government remain blind and remain as it is.