IRS says businesses don't have to report certain crypto transactions until new regulations issued
Quick Take
- Businesses receiving crypto transactions worth more than $10,000 won’t have to report it as cash, for now.
The Internal Revenue Service said Tuesday that businesses won't have to report digital assets in the same way they do cash until new regulations are issued.
The Infrastructure Investment and Jobs Act, which came into force on Jan. 1, requires businesses to report crypto transactions worth more than $10,000 as if it were cash.
The provision is a matter of a lawsuit brought against the IRS by the crypto lobbying group CoinCenter. The rule "will impose a mass surveillance regime on ordinary Americans," CoinCenter argued.
"Treasury and the IRS intend to issue proposed regulations to provide additional information and procedures for reporting the receipt of digital assets, giving the public an opportunity to comment both in writing and, if requested, at a public hearing,” the IRS said in a statement.
"Nothing in this announcement affects the income tax obligations of persons engaged in a trade or business who receive digital assets and persons who use digital assets to make any payments in the types of transactions described above," the tax authority said.
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