Kenne Michael 
WASHINGTON, DC – APRIL 09: U.S. Rep. Brad Sherman (D-CA), talks about big banks during a news conference on Capitol Hill, April 9, 2013 in Washington, DC. Sen. Bernie Sanders and Rep. Sherman announced legislation to break up big banks that are bigger now than before a taxpayer bailout following the 2008 financial crisis. (Photo by Mark Wilson/Getty Images)
Congressional members expressed worries about the lack of tax compliance in the crypto industry, emphasizing that it has long been associated with tax evasion and contributes significantly to the tax gap in the United States.
The #Cryptocurrency industry has been a major source of tax evasion & a significant part of the nation's tax gap.
Today I, along with @RepStephenLynch, urged @USTreasury & #IRS to release proposed regulations that would bring the cryptocurrency industry into full tax compliance. pic.twitter.com/VgTlAzrOE4
— Congressman Brad Sherman (@BradSherman) June 5, 2023
They referred to an audit report from September 2020 that highlighted the IRS’s inability to identify cryptocurrency-related taxpayers due to the absence of reporting requirements. The Infrastructure Investment and Jobs Act (Bipartisan Infrastructure Bill) was signed into law by President Joe Biden in November 2021, mandating taxpayers to report cryptocurrency transactions starting in 2023 to tackle the issue. However, the Congressmen noted that the regulations for the act have yet to be issued.
Given the delay, Congressmen Sherman and Lynch have urged the timely release of the proposed regulations to “close the tax gap and bring the cryptocurrency industry into full tax compliance.” Implementing such regulations will assist the IRS in identifying taxpayers involved in crypto activities and enhance tax compliance within the industry.
I searched through the document, no mention of bitcoin mining, does this mean the Administration's DAME excise tax proposal is gone?
— Pierre Rochard (@BitcoinPierre) May 29, 2023
In May, the Biden administration renewed its efforts to introduce a 30% tax on cryptocurrency miners known as the Digital Asset Mining Energy (DAME) tax. This proposal was initially included in Biden’s FY2024 budget in March 2023. However, the tax on crypto mining was not included in the May legislation that addressed raising the U.S. debt ceiling.
Although concerns regarding the 30% crypto mining tax have subsided for now, proponents of cryptocurrencies believe it may be a temporary measure. Coin Metrics’s co-founder, Nic Carter, anticipates that the administration may attempt to reintroduce the tax in a future omnibus bill.