‘Unconstitutional’ Tax Reporting Rule: Coin Center Sues US Treasury

On Friday, the crypto think tank Coin Center sued the U.S. Treasury Department and the Internal Revenue Service, arguing that a crypto tax reporting obligation contained in a 2021 infrastructure law is “unconstitutional.” The law, which will be implemented in the year 2024, requires U.S. taxpayers who receive more than $10,000 in bitcoin to declare the sender’s social security number and other personal information. The clause was one of several in a 2021 infrastructure bill that included a disputed cryptocurrency tax reporting requirement for brokers. That provision sparked a significant response from the industry, but it was ultimately ineffective. “The reporting mandate would compel Americans who use bitcoin to share personal information and with the federal government,” according to the lawsuit. “Under the mandate’s wording, daily bitcoin senders and receivers would be obliged to give their names, Social Security numbers, home addresses, and other personally-identifying information.” Coin Center is to Protect People’s Rights The objective of Coin Center is to protect people’s rights to create and use free and open cryptocurrency networks, including the freedom to write and publish code and the ability to read and execute it. The ability to form peer-to-peer networks. And the freedom to do it all in privacy. Coin Center has been advancing its objective for the past eight years by educating the public about cryptocurrency tec...