Categories: U.S. Regulation

Controversial Crypto Tax: New Tax Rules on Cryptocy Now Require Reporting of Transactions Over $10k!

New cryptocy tax reporting obligations came into effect on New Year’s Day, crypto advocacy group CoinCenter said on Jan. 2. According to CoinCenter, those new rules require anyone who receives at least $10,000 in cryptocy to report transaction information to the IRS. Required data includes the name, address, and Social Security number (SSN) of the sender, as well as the amount, date, and nature of the transaction. The advocacy group added that those who fail to file a report within 15 days of a transaction could be charged with a felony offense. CoinCenter noted that the new rule took effect on Jan. 1 and is self-executing, or immediately operational and enforceable without further action. Guidance on the official IRS website states that the relevant rule applies to cash transactions over $10,000 in business and trade. It does not explicitly mention crypto or digital assets under its definition of cash. However, the Jan. 1 rule amends the Infrastructure Investment and Jobs Act, which itself took effect in 2021 and extended the definition of cash to include digital assets. CoinCenter asserted its opposition to the new rule today, describing the law as “unconstitutional [and] also virtually impossible to comply with.” It noted, for example, that blockchain miners and validators who receive newly-issued rewards do not have any identifiable sender to include in a report to authorities. Similarly, it noted those who transact through decentralized exchanges do not have any identifiable sender to report. It also objected to lack of clarity around determining the value of any particular cryptocy. CoinCenter additionally noted that the relevant rules require individuals with reporting obligations to file Form 8300 with the IRS. However, CoinCenter said that Form 8300 is also sent to FinCEN and asserted that this agency does not have authority to demand data on cryptocy transactions. CoinCenter said that it filed a lawsuit that challenges the rules as unconstitutional against the U.S. Treasury in June 2022. It said that this case is still in court.
Terron Gold

Recent Posts

Candy Digital Announces Migration to Solana as NFT Platform Repositions for Long Term Growth

NFT platform Candy Digital has announced plans to migrate its digital collectibles ecosystem to the Solana blockchain, signaling…

12 hours ago

US Military Runs Bitcoin Node for National Security Testing, Admiral Tells Congress

The U.S. military has confirmed it is actively running a Bitcoin node as part of national security research, while…

12 hours ago

Over 90% of Web3 Games Failed After $15 Billion Boom as Players Never Showed Up

The Web3 gaming sector is facing a harsh reality check as new data reveals that more…

13 hours ago

Justin Sun Sues Trump Linked World Liberty Financial Over Frozen Crypto Assets

Justin Sun, founder of TRON, has filed a federal lawsuit against World Liberty Financial, a crypto venture…

15 hours ago

Tether Freezes $344 Million in USDT on Tron After Wallets Flagged by U.S. Authorities

Tether has frozen approximately $344 million in USDT on the Tron blockchain after the wallets were flagged by U.S. authorities, marking…

16 hours ago

Kalshi Fines and Suspends Three Congressional Candidates for Betting on Their Own Elections

Prediction market platform Kalshi has fined and suspended three U.S. congressional candidates after determining they engaged in “political…

17 hours ago