H.J.Res.25 - Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Internal Revenue Service relating to Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales. (119th Congress)
Summary
H.J. Res. 25 proposes congressional disapproval of an IRS rule concerning gross proceeds reporting by brokers involved in digital asset sales. The resolution utilizes the Congressional Review Act, allowing Congress to overturn agency regulations. The rule in question, 89 Fed. Reg. 106928, mandates brokers to report digital asset sales to the IRS.
Expected Effects
If enacted, H.J. Res. 25 would nullify the IRS rule, preventing the agency from enforcing the new reporting requirements for digital asset brokers. This would maintain the existing regulatory landscape concerning digital asset reporting. It would shift the burden of reporting from brokers back to individual taxpayers.
Potential Benefits
- Reduced compliance costs for brokers of digital assets.
- Prevents potential overreach by the IRS into the digital asset space.
- May encourage innovation and investment in the digital asset sector by reducing regulatory burdens.
- Protects privacy of digital asset holders by limiting automatic reporting to the IRS.
- Allows for further debate and refinement of regulations concerning digital assets.
Most Benefited Areas:
Potential Disadvantages
- May increase tax evasion related to digital asset transactions due to lack of broker reporting.
- Could reduce government revenue collected from taxes on digital asset gains.
- Creates uncertainty regarding the future regulatory framework for digital assets.
- May hinder the IRS's ability to monitor and regulate the digital asset market effectively.
- Could lead to unequal tax enforcement, as those who voluntarily report digital asset gains may be at a disadvantage compared to those who do not.
Most Disadvantaged Areas:
Constitutional Alignment
This resolution aligns with the principle of congressional oversight of executive agencies, as outlined in Article I, Section 1, which vests all legislative powers in Congress. The Congressional Review Act, under which this resolution is filed, is a mechanism for Congress to check the power of the executive branch. The resolution itself does not infringe upon any specific constitutional rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).