The IRS proposed to the White House: adopt a Crypto Assets reporting framework, this new proposal may change the taxation rules for crypto assets.

[IRS Proposes to White House: Adopt Crypto Assets Reporting Framework, This New Proposal May Change Crypto Assets Tax Rules] According to regulatory documents, the Internal Revenue Service (IRS) has submitted a proposal to the White House, recommending the adoption of an international standard for reporting and taxing digital assets, and the White House is currently reviewing this proposal. The proposal titled “Broker Digital Asset Reporting Proposal” was submitted to the White House on November 14, focusing on the implementation of the “Crypto Asset Reporting Framework” (CARF). As a global tax standard, CARF will allow the IRS to access data on foreign crypto asset accounts held by U.S. citizens. If implemented, this measure will align the U.S. tax system with that of 72 other countries that have committed to implementing CARF by 2028. The document also pointed out that the IRS did not classify the measure as a policy “with significant economic impact.” However, once implemented, U.S. taxpayers will need to adhere to stricter standards when declaring capital gains generated from foreign platforms. The Crypto Assets Reporting Framework (CARF) was launched by the Organisation for Economic Co-operation and Development (OECD) at the end of 2022, with the clear goal of promoting the sharing of information related to Crypto Assets among participating countries to combat international tax avoidance.