The Infrastructure Investment and Jobs Act, passed by the US Congress in November 2021, introduced a new provision into the Tax Code. Under this provision, individuals who receive over $10,000 in cryptocurrency in their trade or business must report the transaction to the Internal Revenue Service (IRS) within 15 days. The new rule came into effect on January 1, 2024, and requires the submission of detailed personal information.
Coin Center, a cryptocurrency advocacy group, has filed a lawsuit against the Treasury Department, challenging the constitutionality of the law. However, the legal process is ongoing, and in the meantime, all Americans are required to comply with the law. Failure to do so may result in felony charges.
Complying with the law can be challenging in practice, especially for crypto miners, validators, and participants in decentralized exchanges. These individuals may require assistance in determining whose information to report or identifying the other party involved in the transactions.
Organizations that receive cryptocurrency donations over $10,000 also face complex issues, particularly if the contributions are anonymous. Complying with counterparty reporting requirements becomes impossible in such cases.
Furthermore, there is still a lack of clarity regarding the criteria for evaluating the $10,000 threshold in terms of cryptocurrency value. The IRS has yet to provide guidance on these matters, leaving many uncertain.
The specific process and forms for filing reports on cryptocurrency transactions are still unresolved. While Form 8300 is the standard for cash transactions, it is yet to be determined whether it applies to cryptocurrencies, which are now legally classified as cash.
Despite ongoing lawsuits challenging the law’s constitutionality, it remains enforceable until a court overturns it.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Jerry Brito |
| Companies | Treasury Department, Coin Center, Internal Revenue Service (IRS) |
| Currencies | None |
| Securities | None |
