The U.S. must enact new regulations before the rules apply beyond cash.
Two U.S. agencies announced on Jan. 16 that controversial transaction reporting rules will not apply to digital assets, namely cryptocurrencies.
“Businesses do not have to report receipt of digital assets the same way they report receipt of cash until the Treasury Department and the IRS issue regulations,” the IRS and Treasury Department said.
In an accompanying announcement, the IRS and Treasury said: “This announcement provides transitional guidance… and clarifies that there is currently no requirement to include digital assets when determining whether a single transaction (or two or more related transactions) meets the reporting threshold.”
The two agencies said they intend to publish proposed rules applicable to digital assets at a later date. This will allow the public to submit comments in writing and, if necessary, through public hearings.
Earlier uncertainty about the $10,000 reporting rule
The rule requires businesses to report receipt of cash of more than $10,000 on Form 8300 within 15 days.
Currently, the text of the regulations only mentions cash and does not explicitly mention digital assets. However, a specific law, the Infrastructure Investment and Jobs Act, was previously updated to treat digital assets as cash. The IRS and Treasury Department acknowledged the change but said new guidance would need to be issued before the change could take effect.
The regulation has drawn complaints, particularly from industry group CoinCenter, which claims the rules began to apply to crypto exchanges earlier this year. It also worries that the requirements could apply to entities that are unable to comply, such as blockchain miners, validators and decentralized exchange users.
CoinCenter has also challenged the regulations in court. However, since the lawsuit has not progressed since mid-2023 and neither agency admitted the lawsuit today, the case does not appear to have prompted the latest announcements from the two agencies.
The postponed regulations only relate to additional reporting requirements applicable to large transactions. Ordinary income tax rules still apply, requiring U.S. cryptocurrency investors and traders to report gains and losses on digital assets. #IRS #加密货币征税
