“IRS Provides Tax Relief for Cryptocurrency Holders: What It Means for XRP Investors”

The Internal Revenue Service (IRS) has introduced temporary relief measures affecting cryptocurrency tax reporting, which may impact XRP holders.

Previously, the IRS planned to enforce the First-In, First-Out (FIFO) accounting method for calculating capital gains on digital assets, potentially leading to higher tax liabilities for investors.

Recognising the challenges this posed, the IRS has postponed the mandatory implementation of FIFO until December 31, 2025.

This extension allows taxpayers to continue using alternative accounting methods, such as Highest-In, First-Out (HIFO) or Specific Identification (Spec ID), offering greater flexibility in managing tax obligations.

It’s important to note that this relief is not specific to XRP but applies broadly to all digital assets.