AUSTIN, Texas — Crypto think tank Coin Center filed a lawsuit against the U.S. Treasury Department and Internal Revenue Service on Friday, claiming a crypto tax reporting requirement enshrined in last year's infrastructure law is "unconstitutional."
The requirement, which will take effect in 2024, requires U.S. taxpayers who receive over $10,000 in cryptocurrency to report the Social Security numbers and other personal information of the sender. The provision was one of several included in last year's infrastructure bill, which also included a controversial crypto tax reporting requirement that applied to brokers. That provision galvanized a massive industry backlash, although the prevision was ultimately unsuccessful.
"The reporting mandate would force Americans using cryptocurrency to share intrusive details about themselves, both with each other and with the federal government," the lawsuit said. "Under the terms of the mandate, everyday senders and receivers of cryptocurrency would be forced to reveal their names, Social Security numbers, home addresses another personal identifying information."
According to the suit, Coin Center is concerned that the rule would require Americans to store sender information for up to a year in case any given set of transactions could be deemed "related," if the total ultimately reaches $10,000 or more.
Treasury Secretary Janet Yellen and IRS head Charles Rettig are both named defendants in the suit.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.