The IRS and Treasury Department have said that businesses do not need to report receiving virtual currency until new regulations are issued.
In a press release on January 16, the Internal Revenue Service (IRS) said in a joint statement with the U.S. Department of the Treasury that U.S. companies do not need to report receipts in virtual currency in the same way as they do in cash. Ta. However, regulators noted that this exception will only last “until the Treasury Department and the IRS issue regulations.”
“The Treasury Department and the IRS intend to issue proposed regulations that provide additional information and procedures for reporting the receipt of digital assets and provide the public with an opportunity to comment in writing and, if requested, at a public hearing. ”
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The IRS said the announcement does not affect rules established before the Infrastructure Investment and Jobs Act regarding reporting cash received in the course of a trade or business. It added that cash transactions exceeding 100% must still be reported. Form 8300, within 15 days of receipt.
In late September 2023, the IRS introduced new proposed regulations focused on reporting information on sales and exchanges of certain virtual currencies. The primary purpose of these regulations is to expand existing reporting requirements to cover cryptocurrency transactions.
With this update, brokers will face new responsibilities under the proposed regulations, requiring them to return information on behalf of their customers and provide recipient statements for designated virtual currency dispositions. , which would require the introduction of new IRS forms.
The regulations are expected to come into force in 2026 and apply to transactions in 2025, with certain provisions expected to take effect in 2027 for transactions occurring in 2026.
Blockchain company ConsenSys said in a public response that if the proposed regulations are finalized as they are, they will be used by “software developers and others in rapidly growing industries with unique technical and operational characteristics. “a new and complex regulatory scheme” would be imposed on the country.
