The IRS recently announced a temporary relief measure that is expected to benefit CeFi exchange users in 2025. 🎉 This measure aims to address concerns raised by the Section 6045 custodian broker regulations, which require digital assets to adopt a first-in, first-out (FIFO) accounting method unless another preferred method is chosen.

Cointracker's Tax Strategy Director, Shehan Chandrasekera, pointed out that most CeFi brokers are not yet prepared to support Spec ID, which could lead cryptocurrency holders to face a higher tax burden when selling their assets. 💸 In a bull market, this situation could unintentionally maximize capital gains for taxpayers.

The temporary relief allows taxpayers to continue using their own records or tax software to identify the specific units sold, applicable for the full year of 2025. Taxpayers need to choose an appropriate accounting method with their brokers during this period. 🔍