Will the infrastructure bill lead to higher taxes for crypto investors?

Cryptocurrency investors may face higher taxes as the infrastructure bill cracks down on future IRS reporting, financial experts say. The $1.2 trillion deal calls for mandatory yearly tax reporting from digital currency brokers starting in January 2023 to help pay for President Joe Biden’s domestic spending agenda.

What is the infrastructure bill?

The infrastructure bill, known as HR 3684, allocates money to build roads, bridges, transportation systems, and support clean energy, among other developments. The bill includes a tax provision that outlines plans to raise about $28 billion for that $1 trillion package through taxes from crypto transactions.

How much will the $1 trillion crypto tax bill raise?

The bill includes a tax provision that outlines plans to raise about $28 billion for that $1 trillion package through taxes from crypto transactions. “As we know, cryptocurrency is a digital asset that more and more people are investing in.

Will a Senate Bill impose a reporting requirement on crypto transactions?

Specifically, the Senate bill includes a provision which would impose reporting requirements for "brokers" about crypto transactions for standard items most stock brokers report on investments already – basic data such as price points at purchase and sale, etc.