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 […]
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The U.S. Department of the Treasury and the IRS have released final regulations for tax reporting on digital asset sales, as part of the Biden-Harris administration’s implementation of the Infrastructure Investment and Jobs Act. Additionally, the Treasury and the IRS revealed that they anticipate issuing further rules later this year to establish reporting requirements for […]
The Internal Revenue Service did not include decentralized exchanges or self-custodial wallets under its broker reporting requirements.
The United States Internal Revenue Service (IRS) revealed its final draft of the new crypto broker reporting requirements on June 28, and clarified the scope of industry participants affected by the new rule changes.
According to the IRS' new reporting guidelines, decentralized exchanges and self-custody wallets will not be subject to the new reporting rules. In the recent update, the IRS explained that it reviewed the widespread comments and complaints from industry respondents, ultimately deciding it needed "more time to consider the nuances" of completely decentralized networks.
Moreover, stablecoins and tokenized real-world assets were not exempt from the government agency's new reporting requirements and will be treated the same as other digital assets.
The Washington DC-based blockchain advocacy group argued the IRS' broker rule provisions violate the Paperwork Reduction Act.
The Blockchain Association is once again objecting to the Internal Revenue Service's (IRS) proposed broker-dealer rules; this time focusing on the undue burden the rules would impose on investors, cryptocurrency companies, and the Internal Revenue Service itself.
In the letter, the industry advocacy group cited the Paperwork Reduction Act, which states that government regulators must not burden individuals and entities involved in the financial system with unnecessary and obtuse paperwork requirements.
Spokespeople for the Blockchain Association argued that signing these proposed rules into law would add 8 billion 1099-DA tax forms that must be processed, 4 billion hours in labor wasted to process the forms, and an annual compliance cost of $254 billion.
Based on a report by the National Post, Canada’s Revenue Agency (CRA) is actively searching for uncollected taxes on cryptocurrencies. The agency estimates that there is nearly $40 million in undeclared taxes related to digital currencies. Concurrently, Prime Minister Justin Trudeau is proposing an increase in capital gains taxes from 50% to 66% for any […]
On Monday, April 29, Keonne Rodriguez, co-founder of the non-custodial bitcoin wallet Samourai, entered a plea of not guilty to accusations of operating a money transmitter and engaging in money laundering. Rodriguez secured his release by posting a $1 million bail and will be confined to his residence in Harmony, Pennsylvania, with his movements monitored […]
Over the past two days, there has been a notable uptick in concern within the crypto community regarding the U.S. government’s actions toward non-custodial wallets, which facilitate the sovereign storage of crypto assets. Recent events have fueled a widespread belief that a targeted campaign against non-custodial wallets is now underway. Debate Over Crypto Wallet Regulation […]
The U.S. Department of Justice has indicted the founders of Samourai Wallet, Keonne Rodriguez, and William Lonergan Hill, on charges of operating an unlicensed money-transmitting business and laundering over $100 million through illicit transactions. DOJ Indicts Samourai Wallet Founders for Allegedly Operating $100 Million Crypto Laundering Ring According to the indictment unsealed by the Southern […]
A new draft tax form by the Internal Revenue Service (IRS) is proposing tracking specific crypto transactions. The Digital Asset Proceeds From Broker Transactions draft indicates that taxpayers must fill out Form 1099-DA, which collects trader identification and detailed transaction data from crypto “brokers.” According to Shehan Chandrasekera, a crypto accountant and the head of […]
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The U.S. Internal Revenue Service (IRS) has released a draft tax Form 1099-DA for reporting digital asset proceeds from broker transactions. Brokers, including unhosted wallet providers, are required to report proceeds from digital asset dispositions to the IRS. A crypto tax expert has highlighted that the collection of certain data points, such as wallet addresses, […]