IRS Postpones Reporting Requirements for Certain Crypto Transacti

On January 16^th, the IRS printed Announcement 2024-4 (the “Announcement”), suspending sure reporting necessities for big crypto transactions which had been set to enter impact for the 2024 tax yr. Individuals engaged in a commerce or enterprise who obtain greater than $10,000 in money in a single transaction or a number of associated transactions usually should report figuring out details about the payor and the transaction on IRS Type 8300 and could also be topic to civil and felony penalties for noncompliance. For the 2024 tax yr and future years, the Infrastructure Funding & Jobs Act modified the aforementioned reporting necessities by treating digital property as money solely for these reporting functions and thereby subjecting sure receipts of digital property to reporting (here). Pursuant to the Announcement, taxpayers won’t be topic to those reporting necessities solely on account of their receipt of digital property till Treasury and the IRS publish laws thereon. 

The Announcement doesn’t point out when extra steerage shall be printed or the substance of such steerage. For example, not too long ago proposed dealer reporting laws included an expansive view of the time period digital property (e.g., crypto, non-fungible tokens, stablecoins), as mentioned here. Whether or not a equally expansive view of digital property would apply for functions of reporting giant digital asset transactions stays to be seen. As soon as laws are printed, companies might want to replace their reporting techniques to adapt to those guidelines in an effort to settle for digital property as fee.