The U.S. Treasury Department and Internal Revenue Service announced Tuesday that companies do not have to report the receipt of digital assets, at least not yet.
Under the Infrastructure Investment and Jobs Act of 2021, taxpayers engaged in trade or business must report receipts of cash, including digital assets, if the amount exceeds $10,000. be. Tuesday's guidance makes clear that this particular provision will not go into effect until the Treasury Department and IRS issue regulations.
The Treasury Department and the IRS “will establish regulations and provide additional information and procedures for reporting receipt of digital assets,” Tuesday's announcement said. The agency has not disclosed a deadline or schedule for the policy.
read more: Who is affected by the new cryptocurrency tax reporting requirements in the US?
The Treasury Department and IRS released proposed rules regarding digital assets in August 2023, in which the authorities defined “digital asset brokers” as “trading platforms, digital asset payment processors, certain digital asset hosted wallet providers, and They proposed to define it as “a person who regularly offers to redeem digital assets.” Created or published by that person. ”
Notably, and to the delight of many industry participants, institutions exempt individual miners and validators from the “broker” classification.
Still, if the rule passes, it will create troubling responsibilities for many industry players. The proposed rule changes have not yet been finalized.
The Treasury Department announced Tuesday that it plans to issue regulations in parallel with the IRS that specifically address digital asset reporting issues. The agency will also provide updated forms and instructions, it said, adding that until then, these disclosures are not yet required.
“A person engaged in a trade or business and who, in the course of that trade or business, receives more than $10,000 in cash (excluding digital assets) in one transaction (or two or more related transactions) continues to be subject to the following: 6050I with respect to cash received,” the agency said.
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