White House Considers IRS Plan to Tax Overseas Crypto Accounts Under CARF
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The White House is reviewing a new Internal Revenue Service (IRS) proposal called “Broker Digital Transaction Reporting,” which aims to bring the United States into the global Crypto-Asset Reporting Framework (CARF). If approved, the agency can access information on Americans who hold crypto accounts overseas.
New Rules Could Restrict Transaction Flows to Foreign Crypto Platforms
The IRS proposal was submitted to the White House on November 14 as it would encourage Americans to report capital gains from foreign platforms with greater accuracy.
JUST IN: 🇺🇸 Trump administration reviewing proposal to allow the IRS to access and tax Americans' foreign crypto account data.
— Watcher.Guru (@WatcherGuru) November 17, 2025
Capital gains in the United States follow a clear logic. When someone sells or spends a digital asset for more than they paid, the difference becomes taxable income. The rate depends on how long the asset was held.
A stronger reporting system means the IRS can track these profits more easily, including profits made on platforms outside the country. This is where the global framework comes in.
In late July, the White House laid out its broader crypto policy recommendations. The report pointed to CARF — a global reporting framework — as a way to stop Americans from shifting digital assets to offshore exchanges to avoid a crypto tax bill.
If the rules are tightened, it becomes harder to move funds abroad. Domestic exchanges also gain breathing room because foreign crypto accounts would no longer offer a tax-evading advantage.
CARF is scheduled to begin in 2027 and seventy-two countries plan to participate, including Brazil, Indonesia, Italy, Spain, Mexico, and the United Kingdom.
The framework was created by the Organization for Economic Cooperation and Development (OECD) in 2022. The goal was to offer a worldwide standard for crypto accounts reporting because digital assets move in ways traditional financial systems never could.
People can transfer tokens instantly across borders, hold funds in self-custody wallets outside banks, and transact without revealing their identity. These features make taxation difficult.
CARF solves part of this problem by allowing governments to share information and identify international tax evasion.
Meanwhile, the United States is expected to launch the 1099-DA form in January 2026. This new requirement will force US-based crypto exchanges to report far more detailed information, including both incoming and outgoing transfers.
Analysts and crypto traders assert this will effectively remove anonymity in the digital asset space.
As Crypto Taxes Expand, Will the Market Shrink or Evolve?
The world is moving fast on crypto tax rules.
Last month, Nigeria announced that crypto gains will face a 15% tax starting in January 2026.
This decision has elicited mixed reactions. While some experts worry about unclear regulations and limited platform access, others believe the move will finally give digital assets a legitimate place in the economy.
Reform efforts are also growing in the United States. Jack Dorsey recently urged policymakers to allow a tax-free limit on small Bitcoin payments.
Pro-crypto Senator Cynthia Lummis supported Dorsey’s argument as she noted that Congress already introduced the Digital Asset Tax Fairness Act to fix the issue. The bill would remove capital gains reporting on crypto transactions under $300, with an annual cap of $5,000.
As crypto tax structure continues to evolve, supporters say stronger rules will protect consumers, reduce fraud, and bring long-term stability. However, critics argue it could slow innovation, push users offshore, and reduce the flexibility that made crypto appealing in the first place.
