Washington is preparing for one of the most aggressive expansions of crypto tax enforcement in U.S. history.
Key Takeaways:
- The White House is reviewing a proposal that would let the IRS access Americans’ offshore crypto accounts.
- The move aligns the U.S. with CARF, a global crypto tax-information sharing system launching by 2027.
- Foreign custodians would be required to report U.S. taxpayers’ digital-asset holdings, similar to FACTA but for crypto.
A proposal now circulating inside the White House would give the Internal Revenue Service access to Americans’ offshore digital-asset accounts, closing a loophole that has allowed some crypto holders to move wealth overseas without reporting it.
What began as a Treasury Department draft has now reached the Oval Office for review, signaling that the Trump administration is no longer willing to rely on voluntary compliance when it comes to blockchain-based wealth. The objective is simple: if a U.S. taxpayer holds crypto abroad, the government wants to know about it.
The United States Eyes a Global Reporting Network
The international piece is where the policy becomes especially significant. The proposal aligns the U.S. with CARF — the Crypto Asset Reporting Framework, introduced by the OECD in 2022. Under CARF, countries trade crypto account information automatically rather than waiting for tax-evasion cases to unfold years later.
Dozens of governments have already signed on, including European economic giants like France and the UK and Asian powerhouses like Japan, Singapore, and the UAE. If Washington moves forward, the U.S. would join before the worldwide rollout planned for 2027 — and offshore wallets would no longer offer Americans anonymity from the IRS.
The FACTA Blueprint Makes a Comeback
The enforcement method wouldn’t be new — but the target is. Treasury officials modeled the plan on the FACTA system that forced foreign banks to report American financial accounts. This time, however, the spotlight shifts from bank deposits to digital assets. Custodians outside the United States would be required to transmit information on U.S. citizens’ wallets directly to American tax authorities.
For crypto investors who parked assets offshore expecting regulatory distance, that distance may soon vanish.
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Source: https://coindoo.com/white-house-weighs-irs-access-to-americans-offshore-crypto-wallets/