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 law is currently in force, and all Americans are required to comply. Failure to comply may result in felony charges. Despite the obligation to comply, there are challenges in doing so.
For instance, crypto miners or validators who receive block rewards exceeding $10,000 may need assistance in determining whose information to report. Similarly, individuals participating in decentralized exchanges may face difficulties in identifying the other party involved in the transactions. Organizations that receive cryptocurrency donations over $10,000 also encounter complex issues, especially if the contributions are anonymous.
Furthermore, there is a lack of clarity regarding the criteria for evaluating the $10,000 threshold in terms of cryptocurrency value. The IRS has not provided guidance on these matters, leaving many uncertain. The process of filing reports for cryptocurrency transactions is also unresolved, as it is unclear whether the standard Form 8300 for cash transactions applies to cryptocurrencies.
While lawsuits challenging the constitutionality of the law are ongoing, it remains enforceable until a court overturns it. The cryptocurrency community awaits further guidance and clarification from the IRS to navigate the complexities of complying with the new reporting requirements.
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 |
