Odaily Planet Daily News - The IRS has released a temporary relief measure that is expected to benefit users of CeFi exchanges in 2025. This relief measure addresses concerns raised by the final version of Section 6045 regarding custodial broker regulations, which will take effect on January 1, 2025, requiring the use of a first-in-first-out (FIFO) accounting method for digital assets unless the highest-in-first-out (HIFO) or Spec ID methods are chosen. Shehan Chandrasekera, the tax strategy director at Cointracker, explained the issue, emphasizing that 'as of January 1, 2025, almost all CeFi brokers are not yet prepared to support Spec ID.' This lack of preparation will force many cryptocurrency holders to default to FIFO accounting, potentially resulting in a higher tax burden during asset sales. He described, 'In a bull market environment, this could be disastrous for many taxpayers, as you might inadvertently sell the earliest purchased assets first (which often have the lowest cost basis) while unknowingly maximizing your capital gains.' The IRS's temporary relief allows taxpayers to continue using their own records or tax software to identify the specific units being sold. The relief period applies only to CeFi transactions from January 1, 2025, to December 31, 2025. After this date, taxpayers will need to formally choose an accounting method with their brokers. Chandrasekera also emphasized the importance of synchronizing tax software with broker settings. (Bitcoin.com)