The IRS and Treasury Department have announced that businesses are not required to report cryptocurrency receipts until new regulations are issued. In a joint press release on Jan. 16, the IRS stated that American businesses do not need to report their cryptocurrency receipts in the same manner as cash. This exception will remain in place until regulations are issued by the Treasury and IRS.
The announcement does not affect the existing rules for reporting cash received in trade or business prior to the Infrastructure Investment and Jobs Act. Cash transactions exceeding $10,000 received in trade or business still need to be reported on Form 8300 within 15 days of receipt.
The IRS proposed new regulations in late September 2023, focusing on information reporting for specific crypto sales and exchanges. These regulations aim to expand current reporting requirements to include crypto transactions. Brokers will have new responsibilities under the proposed regulations, including submitting information returns and providing payee statements for designated crypto dispositions on behalf of their customers. This will require the introduction of a new IRS form.
The regulations are expected to take effect in 2026, with applicability to transactions in 2025. Specific provisions will come into effect in 2027 for transactions occurring in 2026. Blockchain firm Consensys expressed concerns in a public response, stating that the proposed regulations, if finalized as is, would impose a complex regulatory scheme on software developers and others in a rapidly growing industry with unique technical and operational features.
For more information, the IRS has listed four crypto crimes as top frauds of 2023. Stay updated by following us on Google News.