A joint statement from the Treasury Department and the IRS states that the new rules introduce the 1099-DA reporting form. The Treasury reviewed more than 44,000 proposals before introducing the new reporting form, officials say. And they emphasize: owners of cryptocurrencies “have always been required to pay tax on the sale or exchange of digital assets.”
“The new rule simply created formal reporting requirements to encourage taxpayers to report accurately on their returns and pay taxes on time in accordance with applicable law,” the regulators said in a statement.
New reporting requirements for cryptocurrency transactions were created by the Infrastructure Investment and Jobs Act of 2021. It is estimated that the new rules could bring about $28 billion in tax revenue to the US budget over ten years.
Under the law, effective January 1, 2024, taxpayers engaged in a trade or business were required to begin reporting receipts of financial assets, including digital assets, if the value exceeded $10,000.
