Increased information reporting necessarily includes increased information reporting penalties. And these particular information reporting penalties are incredibly stiff. Banks have information reporting requirements and must report how much interest is earned and paid over to account holders. If the proposed legislation in the latest version of the Senate Infrastructure Bill is enacted, then crypto exchanges will have increased information reporting requirements. Information reporting penalties are the most onerous and costly in the Internal Revenue Code.

Source: Forbes August 02, 2021 04:30 UTC