S.jres3 - 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
This document is a joint resolution (S.J. Res. 3) passed by the Senate and House of Representatives to disapprove a rule submitted by the Internal Revenue Service (IRS). The rule concerns "Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales."
The resolution invokes Chapter 8 of Title 5 of the United States Code, which provides a mechanism for Congress to review and disapprove agency rules.
By disapproving the IRS rule, Congress aims to prevent it from taking effect.
Expected Effects
The immediate effect of this resolution, if enacted, is that the IRS rule regarding digital asset sales reporting will not be implemented. This means brokers who regularly provide services effectuating digital asset sales will not be required to report gross proceeds to the IRS.
This could lead to less transparency in digital asset transactions and potentially affect tax revenue collection related to these assets.
Potential Benefits
- Reduced compliance burden for brokers dealing with digital assets.
- Potential for greater privacy for individuals engaging in digital asset transactions.
- May foster innovation and growth in the digital asset space by reducing regulatory hurdles.
- Prevents the IRS from potentially overreaching its authority in regulating digital assets.
- Could lead to further congressional review and refinement of digital asset regulations.
Most Benefited Areas:
Potential Disadvantages
- Reduced transparency in digital asset transactions, potentially facilitating tax evasion.
- May hinder the IRS's ability to accurately track and tax gains from digital asset sales.
- Could create uncertainty regarding the regulatory landscape for digital assets.
- May disproportionately benefit those who use digital assets for illicit purposes.
- Could lead to increased complexity in tax compliance for individuals who do report digital asset transactions.
Most Disadvantaged Areas:
Constitutional Alignment
The resolution is an exercise of Congress's legislative power under Article I, Section 1 of the Constitution, which vests all legislative powers in Congress. The Congressional Review Act (Chapter 8 of Title 5, U.S. Code) provides a specific mechanism for Congress to disapprove agency rules, which is being utilized here. This action aligns with the principle of checks and balances, allowing Congress to oversee and potentially limit the power of the executive branch (in this case, the IRS).
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).