Taxpayers Do Not Have to Report $10K+ Bitcoin Transactions As Cash Until Further Regulations - IRS
The Treasury Department and Internal Revenue Service issued an announcement informing businesses that they do not have to report the receipt of digital assets the same way as they must report the receipt of cash until Treasury and IRS issue regulations.
"The Infrastructure Investment and Jobs Act, which came into force on Jan. 1, requires businesses to report crypto transactions worth more than $10,000 as if it were cash. The provision is a matter of a lawsuit brought against the IRS by the crypto lobbying group CoinCenter," reports The Block.
The law requires taxpayers engaged in trade or business to file a report "including the name, address, and Social Security number of the person from whom the funds were received, the amount received, and the date and nature of the transaction. If you don’t file a report within 15 days of receiving the transaction, you could be found guilty of a felony offense," according to Coin Center's Jerry Brito.
"Announcement 2024-4 provides transitional guidance as Treasury and the IRS implement the new provisions. This particular provision requires Treasury and the IRS to issue regulations before it goes into effect," IRS said in a statement.
"Treasury and the IRS intend to issue proposed regulations to provide additional information and procedures for reporting the receipt of digital assets, giving the public an opportunity to comment both in writing and, if requested, at a public hearing."
"Also interesting to note that this claim that the law “requires the Treasury Department to issue regulations before it goes into effect” is in the press release accompanying the official Announcement. The official Announcement doesn’t make any such claim. Instead it just says that one doesn’t need to count digital assets toward the 6050I reporting. The problem is that Congress has said otherwise and the IRS does not have the authority to second guess it. Very confusing," added Brito.