NEW CRYPTO TAX REPORTING LAW took effect on Jan 1st 2024
Key Takeaways:
š„ You must fill out IRS Form 8300 if you receive $10,000 in digital assets (or multiple tx adding up to $10k)
š„ Senders KYC, SS or TIN
š„ File within 15-days of tx [ or penalties ]
š„ For individuals & businesses
ā”ļø The Infrastructure Investment and Jobs Act passed in 2021 requires reporting of $10,000+ crypto transactions to the IRS.
ā”ļø Failure to report within 15 days may result in a felony offense.
ā”ļø The law became effective on January 1st, 2024, and applies to all Americans.
ā”ļø Coin Center filed a lawsuit against the Treasury Department in 2022, challenging the constitutionality of the law.
ā”ļø Compliance with the new law is difficult due to a lack of guidance from the IRS.
ā”ļø The IRS must clarify reporting standards and procedures for cryptocurrency transactions.
ā”ļø The Treasury Department must address questions regarding anonymous transactions and sender identification.
ā”ļø The IRS has not provided an updated form for reporting cryptocurrency transactions.
ā”ļø It is uncertain if the IRS will issue guidance or a new form in the near future.
Source : https://www.congress.gov/117/plaws/publ58/PLAW-117publ58.pdf
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