Biden Administration Finalizes New Crypto Rules to Crackdown on Tax Evasion
The Biden administration is imposing reporting requirements for crypto platforms to ensure that Americans file accurate taxes on digital asset transactions.
On Friday, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) finalized rules that require crypto brokers to report to the IRS digital asset sales and exchanges starting in the calendar year 2025.
The regulations apply to brokers who handle digital assets being sold by their customers. These include operators of custodial digital asset trading platforms, certain wallet providers, digital asset kiosks and certain processors of digital asset payments (PDAPs).
The IRS says that focusing first on these entities will cover the greatest number of taxpayers because most digital asset transactions today occur using these brokers.
Says IRS Commissioner Danny Werfel,
“These regulations are an important part of the larger effort on high-income individual tax compliance. We need to make sure digital assets are not used to hide taxable income, and these final regulations will improve detection of noncompliance in the high-risk space of digital assets.”
Real estate professionals also need to report the fair market value of digital assets used in real estate transactions with closing dates on or after January 1st, 2026.
Transactions involving stablecoins, non-fungible tokens (NFTs) and digital asset payments are exempted from the reporting requirements if they do not exceed de minimis thresholds.
Decentralized or non-custodial brokers are not covered by the reporting requirements, but a different set of final regulations will be provided for these platforms.
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The post Biden Administration Finalizes New Crypto Rules to Crackdown on Tax Evasion appeared first on The Daily Hodl.
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Author: Rhodilee Jean Dolor
