IRS Delays Reporting Requirements for Digital Assets, Awaiting New Regulations Amidst Crypto Lobby Lawsuit

IRS Delays Reporting Requirements for Digital Assets, Awaiting New Regulations Amidst Crypto Lobby Lawsuit

Crypto News – The U.S. Internal Revenue Service (IRS) announced on Tuesday a significant update regarding the reporting of digital assets by businesses. Under the new directive, businesses are temporarily relieved from reporting digital assets transactions in the same manner as cash transactions, pending the introduction of new regulatory guidelines.

This development follows the enactment of the Infrastructure Investment and Jobs Act, effective from January 1, which mandated that businesses report cryptocurrency transactions exceeding $10,000 as they would for cash transactions.

The current delay in implementation stems from a lawsuit filed by CoinCenter, a cryptocurrency advocacy group, against the IRS. CoinCenter has argued that the stipulated rule would lead to widespread surveillance of ordinary American citizens.

In a recent statement, the IRS, along with the Treasury, disclosed plans to issue proposed regulations that will clarify and establish procedures for reporting digital asset transactions. This process will include opportunities for public input, both in written submissions and potentially through a public hearing, if requested.

The IRS emphasized that this announcement does not alter the existing tax obligations for those who engage in business and receive digital assets, or for individuals using digital assets for payments in transactions as described in the act. This clarification ensures that while reporting requirements are under review, the fundamental tax responsibilities associated with digital assets remain in place.