Unchained Not Reporting Info on Some Transaction Partners Could Soon Be a Felony - Ep.284
Oct 26, 2021
In this insightful discussion, Abe Sutherland, an adjunct professor at the University of Virginia School of Law and a crypto tax law expert, dives into the alarming implications of the $1 trillion infrastructure bill's provision 6050I. He reveals how this regulation could criminalize basic transactions in digital assets and argues that its outdated reporting threshold stifles innovation. Abe emphasizes the tension between financial privacy and government oversight, urging the crypto community to mobilize against stringent regulations that prioritize surveillance over fair taxation.
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6050I Reporting Requirements
- Amendment 6050I to the infrastructure bill requires reporting personal info of people from whom you receive digital assets.
- This applies to transactions over $10,000 and includes crypto, NFTs, and potentially other digital assets.
Form 8300 Burden
- Form 8300, required for reporting under 6050I, takes about 20 minutes to complete.
- The form demands extensive personal information, raising privacy and security concerns.
Mutual Reporting in P2P Trades
- In peer-to-peer trades, both parties may need to report each other's information under 6050I.
- This applies even to NFT sales where one receives crypto and the other receives the NFT.
