According to Odaily Planet Daily, the U.S. Internal Revenue Service (IRS) has issued a temporary relief measure that is expected to benefit CeFi exchange users in 2025. This measure addresses concerns raised by Section 6045 of the custodial broker regulations.
The regulation will take effect on January 1, 2025, requiring the use of the FIFO accounting method for digital assets unless methods such as HIFO or Spec ID are chosen. Shehan Chandrasekera, head of tax strategy at Cointracker, pointed out that almost all CeFi brokers are not yet ready to support Spec ID.
This lack of preparation could result in cryptocurrency holders facing higher taxes when their assets are sold. The IRS’s temporary relief allows taxpayers to continue using their own records or tax software to identify specific units sold, and it applies through 2025.
