BlockBeats news, on January 1, reported by News.Bitcoin, the IRS has announced a temporary relief measure expected to benefit cryptocurrency holders on centralized finance (CEFI) trading platforms in 2025. The regulation will take effect on January 1, 2025, requiring the use of a first-in, first-out (FIFO) accounting method for crypto assets, unless preferred methods such as highest-in, first-out (HIFO) or Spec ID are chosen.
The temporary relief from the IRS allows taxpayers to continue using their own records or tax software to identify specific assets being sold. This relief period only applies 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.