The U.S. is evaluating participation in an international reporting system that would give tax authorities access to Americans’ foreign crypto accounts.
The White House is reviewing a proposal from the Internal Revenue Service that could reshape the way American crypto holders report their offshore digital assets. The move involves joining the Crypto-Asset Reporting Framework (CARF) — a global tax standard designed to curb international tax evasion by enabling information-sharing between governments. If adopted, the U.S. would align itself with dozens of countries already preparing for CARF implementation.
IRS Seeks Access to Foreign Crypto Account Data
The proposal, called Broker Digital Transaction Reporting, was submitted to the White House last week. If approved, it would give the IRS access to detailed data on Americans using foreign crypto platforms, significantly tightening reporting obligations for U.S. taxpayers.
More than 70 countries have committed to adopting CARF by 2028, creating a unified system for tracking digital asset activity across borders.
Though the IRS did not classify the proposal as “economically significant,” experts say it could meaningfully increase compliance requirements for U.S. citizens who trade or store assets offshore.
CARF Gains Global Momentum
CARF, created by the Organization for Economic Cooperation and Development in 2022, aims to provide governments with a standardized method to share cryptocurrency transaction information. The framework is set to take effect in 2027 with an initial group of 50 nations, including the U.K., Italy, Spain, Mexico, Brazil and Indonesia.
An additional set of 23 jurisdictions — among them the United States — have indicated they plan to adopt the framework by 2028.
The rapid global uptake underscores a growing international effort to prevent taxpayers from shifting crypto holdings across borders to avoid taxes.
A White House policy report from July argued that joining CARF would discourage Americans from seeking offshore platforms and ensure domestic exchanges are not put at a competitive disadvantage.
U.S. Prepares for Stricter Domestic Rules in 2026
The move toward CARF aligns with upcoming tightening of crypto reporting rules within the United States.
Beginning in January 2026, U.S.-based exchanges will be required to file 1099-DA forms — new documents that include detailed reporting of users’ inflows, outflows and transaction history.
Crypto tax attorney Clinton Donnelly commented that these changes mark the end of the industry’s era of anonymity.
“A few years down the road, with better tools and data integration, they’ll be able to scan blockchain networks at scale,” he said.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.