The Internal Revenue Service (IRS) announced the hiring of two specialists in cryptocurrency taxes from the private sector, a move aimed at strengthening preparations for the approaching tax period. This initiative utilizes funds provided by the Inflation Reduction Acts (IRA), federal legislative measures aimed at curbing inflation, and aims to improve regulatory compliance in rapidly evolving areas, with digital assets being considered a key priority.
New reinforcement for the IRS focusing on digital assets
The IRS is expanding its ranks with Sulolita Mukherjee and Seth Wilks, who come from the private sector with rich experience in tax advisory and the cryptocurrency industry. Their task will be to support the IRS in developing services, reporting methodologies, regulatory compliance, and enforcement of rules regarding digital assets. IRS Commissioner Danny Werfel emphasizes that involving experts from the private sector is crucial for successfully creating infrastructure for digital assets that will operate efficiently and satisfy all parties.
Inflation Reduction Act as a source of funding
The IRS will utilize funds acquired through the Inflation Reduction Act (IRA) for the development and improvement of compliance in newly forming markets, including digital assets. It is important to note that American taxpayers are not required to report holdings of cryptocurrencies stored in wallets, transfers between wallets owned by the same person, or purchases of digital assets for fiat currency.
Updates to cryptocurrency transaction reporting rules
Before the start of the tax season, the IRS stated that cryptocurrency transactions exceeding $10,000 do not require reporting. This statement preceded the planned introduction of a rule that was postponed until a regulatory framework is established. This step suspended the earlier decision requiring all American businesses to report cryptocurrency transactions exceeding $10,000. The House Financial Services Committee of the United States House of Representatives also highlighted issues associated with inadequately prepared rules for reporting digital assets, which were introduced earlier in the year.
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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“