House Panel Approves Measure to Forgive Crypto Tax Penalties
A key tax-writing panel in Congress approved legislation aimed at granting relief to cryptocurrency holders who failed to properly report their holdings. The measure, designated H.R. 10357, cleared the House Ways and Means Committee with a 38-5 vote. Under the proposed rule, federal tax authorities would have one year from the date of enactment to create a framework for voluntary reporting adjustments.
The initiative gives individuals a two-year window to submit revised returns, pay back taxes, and clear interest charges while avoiding standard fines. Investors who participate during the initial 12 months and demonstrate that their errors were honest oversights would incur zero penalties on the first $25,000 of owed amounts, with a discounted 5% rate on any remainder. Higher fees would apply to those who wait longer or fail to prove non-fraudulent intent.
Before becoming law, the proposal must still undergo votes on the floors of both the House of Representatives and the Senate, followed by executive approval.
Key points
- Congressional lawmakers approved H.R. 10357 on a 38-5 vote within the House Ways and Means Committee.
- The proposed law requires federal officials to set up a voluntary tax correction program within one year.
- Eligible taxpayers who amend past filings in the first year pay no fine on their initial $25,000 in back taxes.
- Unpaid balances beyond $25,000 carry a reduced 5% penalty for non-fraudulent mistakes.
- The legislation requires full approval from both legislative chambers and executive signature to take effect.
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What is H.R. 10357?
H.R. 10357, titled the Digital Asset Tax Certainty Act, is proposed legislation establishing a framework for crypto holders to correct prior tax filing mistakes and receive reduced penalties.
What tax relief does the proposed digital asset program offer?
Taxpayers who file amended returns in the program's first year avoid penalties on their first $25,000 in unpaid taxes and pay a reduced 5% fine on remaining amounts, provided the errors were unintentional.
What steps remain before H.R. 10357 becomes law?
The bill must pass full floor votes in both the House of Representatives and the Senate, then receive the president's signature.