Coin Center Sues US Treasury Over 'Unconstitutional' Tax Reporting Rule

The rule was included in last year's infrastructure law that galvanized the industry over a separate broker rule.

AccessTimeIconJun 11, 2022 at 1:57 a.m. UTC
Updated May 11, 2023 at 5:14 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies 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 with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Nikhilesh De

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.