What issues will the expanded use of digital currency and peer-to-peer cash apps create in terms of NCDOR’s ability to enforce tax compliance?

Project started: February 18, 2022
Department or Agency: NC Department of Revenue

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Topics
CryptocurrencyTaxationRevenueGovernment Operations

Project Overview

Summary

The North Carolina Department of Revenue (NCDOR) administers tax laws and collects taxes due in an impartial, consistent, and secure manner. It is the goal of NCDOR that all taxpayers voluntarily comply with their tax obligations. This means filing and paying all returns due and taxes owed in a timely manner. With the increasing use of cryptocurrency exchanges, NCDOR is seeking an analysis of the impact of cryptocurrency transactions on NC tax obligations.

Anticipated deliverables

  • Quantitative and qualitative analyses of the impact of digital currency and peer-to-peer cash apps on revenue departments in other states and at the federal level.
  • Recommendations for successfully enforcing tax compliance related to digital currency and peer-to-peer cash apps.

Planned use of results

The analyses can help inform NCDOR on how to successfully enforce tax compliance related to digital currency and peer-to-peer cash apps.

The project is in progress.

We plan to post results and deliverables when the project is complete. In the meantime, we welcome questions about the project.

Project point of contact

NC Office of Strategic Partnerships

partnerships@osbm.nc.gov


Project Team

NC Department of Revenue

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