IRS Clarifies Crypto Reporting Law Not Yet Enforced

According to Decrypt, the Internal Revenue Service (IRS) and the Treasury Department have clarified that the new law requiring Americans to report crypto transactions over $10,000 is not currently being enforced and won't be for some time. In a joint statement, the agencies stated that businesses do not have to report the receipt of digital assets the same way as they must report the receipt of cash until Treasury and IRS issue regulations. The provision requires Treasury and the IRS to issue regulations before it goes into effect, which will involve a lengthy period of public comment and review. The law states that any American who receives over $10,000 worth of crypto in the course of 'trade or business' must report identifying information about who paid them that money. However, questions remain about the law's implications, especially for those who receive payments from decentralized autonomous organizations (DAOs) or crypto stakers. Crypto advocacy group Coin Center sued the Treasury Department and the IRS last year, arguing the new statute is unconstitutional. The case is currently on appeal.