2023 Budget Proposal and Reporting Cryptocurrencies

One of President Biden’s 2023 budget proposals would require that stakes in certain foreign financial accounts that hold cryptocurrencies and other digital assets be disclosed to the IRS. These enhanced reporting requirements are outlined in the U.S. Treasury Department’s “Green Book” of revenue estimates. They would apply to U.S. taxpayers who have more than $50,000 in cryptocurrency, financial accounts and other foreign assets. If the president’s budget is passed, the regulation would take effect for tax returns filed after Dec. 31, 2022. This and another proposal in the Green Book that targets financial institutions and brokers are expected to raise $11 billion.