The White House is considering aligning with the CARF tax reporting framework to obtain information on U.S. taxpayers' overseas encryption transactions.

The U.S. White House has recently begun reviewing a key rule aimed at allowing the IRS to obtain cryptocurrency transaction data from U.S. taxpayers at overseas exchanges and to align with the OECD's global “Crypto Assets Tax Reporting Framework” (CARF), with the goal of combating cross-border crypto tax evasion and enhancing the competitiveness of U.S. exchanges.

The White House initiates review: IRS will obtain taxpayers' overseas Crypto Assets account information.

U.S. government data shows that the White House is reviewing a proposal submitted by the IRS for “Broker Digital Transaction Reporting (Broker Digital Transaction Reporting).” Once in effect, the IRS will be able to obtain information on U.S. taxpayers' crypto transactions on overseas exchanges and offshore platforms.

This rule was delivered to the Office of Management and Budget (OMB) under the Office of Regulatory Affairs (OIRA) last Friday, which is responsible for reviewing whether federal regulations align with presidential policy direction.

( The White House: Holding overseas encryption accounts must be reported for taxes, and applications for encryption banks should be fairly reviewed )

Global Integration: The CARF Framework Targets American Citizens' Overseas Tax Evasion

The proposal aims to align the United States with the “Crypto Assets Tax Reporting Framework (Crypto-Asset Reporting Framework, CARF)” adopted by 72 countries.

CARF, driven by major economies such as the UK, Germany, and Japan, is a multinational tax cooperation mechanism designed by the Organisation for Economic Co-operation and Development (OECD). It aims to prevent past investors from exploiting offshore platforms and encryption accounts to evade taxes through automated sharing of transaction information.

(South Korea joins the CARF tax reporting framework, and investor exchange trading information will be shared globally)

The plan is expected to be officially implemented starting in 2027, with the first batch including 50 countries such as the United Kingdom, Spain, Italy, Mexico, Indonesia, and Brazil; additionally, 23 countries, including the United States, are expected to complete implementation before 2028. Now, the United States can be said to be accelerating its follow-up.

Will CARF paired with the new 1099-DA form end the era of Crypto Assets anonymity?

In addition, the United States also plans to introduce a new 1099-DA form starting January 2026, requiring crypto exchanges to report more detailed user deposit and withdrawal, transaction history, and cost basis data. The CARF will complete the IRS's final piece in understanding domestic taxation, forming a complete reporting network.

US crypto tax attorney Clinton Donnelly pointed out that the CARF combined with the new 1099-DA reporting form will allow the IRS to fully grasp the flow of Americans' crypto assets over time. He warned: “This will mark the end of the era of crypto anonymity.”

This means that when you transfer Crypto Assets in or out of the exchange, the IRS will know the source and target wallets. In the future, they will also be able to quickly identify large holders who have not reported and conduct tax audits.

The White House emphasizes: New regulations will not enforce DeFi return transactions.

It is worth noting that the White House clearly stated in its previously released digital assets policy report that any new rules related to CARF will not extend to mandatory reporting of DeFi transactions, symbolizing that the United States still hopes to strike a balance between tax transparency, innovation space, and public privacy.

( White House Crypto Report | Trump Administration Throws Out Stablecoin National Policy: Full Force Expansion of Digital Dollar, Comprehensive Ban on CBDC )

This article discusses the White House considering aligning with the CARF tax reporting framework to obtain U.S. taxpayers' overseas crypto asset transaction data, which first appeared in Chain News ABMedia.