White House Eyes IRS Access to Offshore Crypto Data

• White House considers joining international crypto data-sharing pact.
• IRS could gain access to offshore crypto holdings.
• Policy aims to enhance global crypto tax transparency.

The White House is reviewing a proposal that could give the Internal Revenue Service (IRS) access to Americans’ offshore crypto data. This move involves joining a global data-sharing agreement aimed at cracking down on tax evasion through undisclosed crypto holdings abroad.

The initiative is part of the Crypto-Asset Reporting Framework (CARF), developed by the Organization for Economic Cooperation and Development (OECD). Over 40 countries have already committed to this pact, agreeing to exchange information on crypto transactions held in foreign accounts. If the U.S. joins, it would mark a major step toward aligning domestic tax enforcement with international efforts.

IRS to Expand Crypto Oversight Globally

Currently, the IRS has limited reach when it comes to Americans holding crypto in offshore wallets or exchanges. However, by participating in this global pact, the U.S. tax authority could receive regular data from foreign jurisdictions about American citizens’ crypto holdings.

This effort aims to reduce tax avoidance and ensure transparency in the digital asset space. For crypto users, this could mean increased scrutiny and mandatory disclosures, even for holdings on overseas platforms that were previously out of reach for U.S. regulators.

Policy Still Under Review

While no final decision has been made, the Biden administration’s consideration of this pact signals a tougher stance on crypto tax compliance. The move aligns with the government’s broader push to regulate digital assets and prevent illicit finance.

If approved, the IRS would be empowered with new tools to monitor and enforce crypto-related tax laws on a global scale, closing loopholes that many have used to shelter digital wealth.