New U.S. crypto regulations take effect: Transactions over $10,000 must be reported to the tax bureau

Author: Turner Wright, Cointelegraph; Compiled by: Songxue, Golden Finance

Some aspects of the infrastructure bill signed by U.S. President Joe Biden have already taken effect, including a requirement totransfer funds worth more than 10,000 U.S. dollar digital asset transactions are reported to the U.S. Internal Revenue Service (IRS)'s terms.

The bipartisan infrastructure bill passed by Congress and signed by President Biden in 2021 expands requirements for brokers, requiring many crypto exchanges and custodians to report transactions worth more than $10,000 to the IRS. Crypto trading. After the bill passed, many lawmakers introduced additional legislation to "fix" the reporting requirements, claiming that the information brokers were required to collect would be difficult or impossible to collect.

The bill requires crypto brokers to report personal information about transactions, including the name, address and Social Security number of the sender, to the IRS within 15 days. Tese requirementsaimed at reducing tax gaps in the United States, were initially scheduled to take effect in January 2023, with companies to send reports to the IRS in 2024.

According to Coin Center Executive Director Jerry Brito, many users “will find it difficult to comply” with reporting requirements without guidance from the IRS. He speculated that filers would try to comply with the law but risk being convicted of a felony.

Brito said: “If a miner or validator receives a block reward of more than $10,000, whose name, address and social security number should they report? If you participate in a crypto-to-crypto transaction An on-chain decentralized exchange of currency, so $10,000 of cryptocurrency is received, who should you report it to? And against what criteria should you measure whether the amount of a particular cryptocurrency is equivalent to more than $10,000?"

Publish Rito added: “The really tricky nature of this requirement becomes obvious when someone makes a donation like this, but it can be done anonymously by simply sending Bitcoin or Ethereum to our public address. In this case case, who can we name as the sender?”

In August, Coin Center proposed that the IRS create a trivial exemption for crypto transactions as a way to address ambiguity in reporting guidance and not requiring the government A solution to second-party application requirements for crypto transactions. The IRS began requiring U.S. taxpayers to specifically report digital asset transactions in 2019, but the expansion of these requirements under the Bipartisan Infrastructure Act could make reporting difficult in 2024.