US Treasury mandates cryptocurrency brokers to report sales to IRS, aligning with financial standards.

From Investing.com: 2024-06-28 18:21:58

The U.S. Treasury Dept. mandates cryptocurrency brokers to report users’ sales and exchanges to the IRS to enforce tax compliance. The $1 trillion Infrastructure Investment and Jobs Act aims to generate close to $28 billion in tax revenue over a decade.

Starting in 2026, new rules phase in tax requirements for cryptocurrencies, aligning them with reporting standards for other financial instruments. The final rule was adjusted to ease burdens on brokers and includes a $10,000 threshold for reporting stablecoin transactions.

The revamped regulation addresses concerns from the crypto industry about privacy violations and broad broker definitions. Treasury will release additional rules for non-custodial brokers later this year to establish tax reporting guidelines.

Treasury emphasizes that crypto tax obligations have always existed. The new Form 1099-DA aims to simplify tax filing for digital asset holders by providing necessary information to accurately report gains and pay taxes. Brokers are required to submit these forms to the IRS and clients for tax preparation assistance.

Current IRS tax reporting requirements for crypto users do not provide specific gain calculations, leaving individuals responsible for accurate reporting. The new rule aims to streamline the process by facilitating accurate tax filing and payment.



Read more at Investing.com: US Treasury finalizes new crypto tax reporting rules By Reuters