White House Tax Enforcement Plan Puts Crypto In Crosshairs

Recently, the U.S. Department of the Treasury released their Tax Compliance Agenda for The American Families Plan (the "Report," and the American Families Plan the "Plan").

Under the Agenda, the Internal Revenue Service's (the "Service") budget will be increased by approximately $80 billion over the next decade in order to increase the Service's resources and decrease the current tax gap. The tax gap, the difference between taxes owed to the government and taxes paid, totaled approximately $600 billion in 2019 and amounts to nearly 3% GDP on an annualized basis. The $80 billion will be used to increase and train the Service's workforce and modernize the IT systems employed by the Service, which were implemented in the 1960s. The plan also calls for a new third-party reporting regime that will assist in cross-checking tax returns and increase voluntary compliance.