Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
IRS Eases Crypto Reporting Burden For Businesses

IRS Eases Crypto Reporting Burden For Businesses

CryptodailyCryptodaily2024/01/17 13:49
By:Amara Khatri

Table of Contents

  • IRS Pauses New Crypto Rule
  • IRS Working On New Reporting Regulations
  • Pushback For New Crypto Act

The Internal Revenue System (IRS) and the US Treasury Department have decided to postpone the crypto reporting requirements temporarily to ease the burden on businesses. 

IRS Pauses New Crypto Rule

Businesses conducting crypto transactions in the US have a temporary relief as the IRS and the US Treasury Department have decided to pause the crypto reporting requirements. 

In 2021, the Biden administration introduced the new crypto reporting regulations in its Infrastructure Investment and Jobs Act to monitor the industry, mandating that businesses must disclose all digital asset transactions exceeding $10,000. 

Effective from January 1, 2024, the Act instructs businesses to treat digital asset transactions on par with cash, necessitating the inclusion of all transactions (both cash and crypto) exceeding $10,000 in their tax filings. However, now that the IRS and the Treasury have relaxed the rules temporarily, businesses can continue with the existing reporting method.

IRS Working On New Reporting Regulations

Under the IRS’s latest instructions, businesses need to report only cash receipts over $10,000 using Form 8300 within 15 days of the transaction. Both agencies have announced that they need not include digital asset transactions in their Form 8300 reports till further instructions are issued. 

The IRS released a statement saying, 

"Treasury and the IRS intend to issue proposed regulations to provide additional information and procedures for reporting the receipt of digital assets, giving the public an opportunity to comment both in writing and, if requested, at a public hearing.” 

The tax authority also added that the postponement would not change the income tax obligations of individuals involved in businesses or trades receiving digital assets or those individuals who use digital assets to make payments. 

Pushback For New Crypto Act

The decision to postpone the implementation of the rule is a result of the lawsuit levied against the IRS by the crypto lobbying group CoinCenter, which fears a state of mass surveillance being imposed on American citizens by the new Act.

There has also been pushback due to the nature of the infrastructure bill and how it puts ordinary crypto brokers under the microscope. Under the bill, crypto exchanges and custodians will also be required to report qualifying transactions to the IRS. Furthermore, the crypto community, in general, feels that this level of reporting will defeat the nature of digital assets as it will require providing the sender's personal information, thus rendering the private nature of crypto transactions useless. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!