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US Corporate Law News: Internal Revenue Service to begin enforcing crypto withholding rule

20 May 2018 | Applicable law: US

At the American Bar Association Section of Taxation Conference held on May 12, 2018, the IRS' plan to begin strictly enforcing the requirement to withhold taxes for cryptocurrency payments to nonresident aliens this year was discussed. 

Although this requirement to withhold 30 percent of payments to nonresident aliens is already set out under IRC Section 1441, the IRS is only recently determined to enforce the requirement this year given the emerging rise of the use of cryptocurrencies.

The U.S. Department of Justice is also said to develop a larger ecosystem to support the prosecution of matters related to the use of cryptocurrencies, as the Justice Department gains substantial institutional knowledge by pursuing crypto-related crimes in matters in recent years, including the Silk-Road money-laundering case.

For more information, see here.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.

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