Washington State Rep. proposes draft to block IRS tax on crypto gains under $200

Rep. Suzan DelBene of Washington state is seeking to amend the Internal Revenue Code of 1986 to exclude gains from personal transactions in certain virtual currencies, according to a draft of the Virtual Currency Tax Fairness Act of 2022 on Tuesday. If signed into law, the bill could prevent the Internal Revenue Service, or IRS, from taxing crypto trading gains of $200 or less. Suzan DelBene said the U.S. needs to “ensure that our tax code evolves with our use of virtual currencies.” Under current U.S. tax law, capital gains events are taxed at approximately 20%. The deadline for residents to file tax returns on cryptocurrency and fiat income is April 18.