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Congress’ Crypto Reporting Rules Draw Constitutional Challenge

June 11, 2022, 5:29 PM

A cryptocurrency reporting requirement enacted in last year’s bipartisan infrastructure law violates the Fourth Amendment’s protection against unreasonable searches, a new lawsuit alleges.

The complaint, filed Friday by cryptocurrency consultant Dan Carman, challenges the expansion of tax code Section 6050I to cover Bitcoin and other digital assets. That section of the tax code requires businesses that receive more than $10,000 in cash in a transaction or series of related transactions to disclose various information to the IRS, including identifying details of the client.

Carman and his co-plaintiffs, which include Washington-based advocacy group Coin Center, argued that the ...