IRS says controversial $10k reporting rule does not currently apply to crypto
Two US agencies announced on January 16 that the controversial transaction reporting rules do not apply to digital assets (i.e. cryptocurrency).
The Internal Revenue Service (IRS) and Treasury Department said:
Previous uncertainty about $10k reporting rule
The rule requires businesses to report receiving more than $10,000 in cash on Form 8300 within 15 days.
Currently, the text of the rule only mentions cash and does not explicitly mention digital assets. However, one particular law (the Infrastructure Investment and Jobs Act) was previously updated to treat digital assets as cash.
The IRS and Treasury agreed to the change but said the provision required new guidance to be issued before the change took effect.
The rule has previously received complaints, particularly from industry group CoinCenter. CoinCenter claimed that the rules began applying to crypto transactions in early January. Concerns have also been raised that the requirements could also apply to non-compliant entities, such as blockchain miners, validators, and users of decentralized exchanges.
CoinCenter also challenged the rules in court. However, since this case has not progressed since mid-2023 and has not been accepted by either agency today, the lawsuit apparently did not trigger the agencies’ final announcement.
The deferred rules relate to extra reporting requirements that apply only to large transactions. General income tax rules requiring U.S. crypto investors and traders to report gains and losses on digital assets still apply.
#IRS #controversial #10k #reporting #rule #apply #crypto
Two US agencies announced on January 16 that the controversial transaction reporting rules do not apply to digital assets (i.e. cryptocurrency).
The Internal Revenue Service (IRS) and Treasury Department said:
In the accompanying announcement, the IRS and Treasury said:
The two institutions said they plan to publish proposed regulations regarding the acquisition of digital assets at a later date. This will allow the public to submit comments in writing and, if requested, at a public hearing.
Previous uncertainty about $10k reporting rule
The rule requires businesses to report receiving more than $10,000 in cash on Form 8300 within 15 days.
Currently, the text of the rule only mentions cash and does not explicitly mention digital assets. However, one particular law (the Infrastructure Investment and Jobs Act) was previously updated to treat digital assets as cash.
The IRS and Treasury agreed to the change but said the provision required new guidance to be issued before the change took effect.
The rule has previously received complaints, particularly from industry group CoinCenter. CoinCenter claimed that the rules began applying to crypto transactions in early January. Concerns have also been raised that the requirements could also apply to non-compliant entities, such as blockchain miners, validators, and users of decentralized exchanges.
CoinCenter also challenged the rules in court. However, since this case has not progressed since mid-2023 and has not been accepted by either agency today, the lawsuit apparently did not trigger the agencies’ final announcement.
The deferred rules relate to extra reporting requirements that apply only to large transactions. General income tax rules requiring U.S. crypto investors and traders to report gains and losses on digital assets still apply.
#IRS #controversial #10k #reporting #rule #apply #crypto