According to Blockworks, the US Treasury Department and Internal Revenue Service (IRS) announced on Tuesday that businesses are not required to report the receipt of digital assets for now. The Infrastructure Investment and Jobs Act, enacted in 2021, mandates that taxpayers engaged in a trade or business must report receiving cash, including digital assets, when the value exceeds $10,000. However, this provision will not take effect until the Treasury and IRS issue regulations. The agencies plan to prescribe regulations to provide additional information and procedures for reporting digital asset receipts, but no deadline or timeline has been given.
In August 2023, the Treasury and IRS proposed rules for digital assets, suggesting that 'digital asset brokers' be defined as trading platforms, digital asset payment processors, certain digital asset hosted wallet providers, and persons who regularly offer to redeem digital assets created or issued by them. Individual miners and validators were exempted from the 'broker' classification, pleasing many industry members. However, the proposed rule change has not been finalized, and if passed, would add responsibilities that many industry players find troubling.
The Treasury announced its intention to publish regulations, alongside the IRS, specifically addressing digital asset reporting. Updated forms and instructions will also be provided. Until then, these disclosures are not required. The agency clarified that businesses receiving cash (excluding digital assets) in excess of $10,000 in one transaction or multiple related transactions must continue to file an information return under section 6050I.