The IRS and the US Treasury have said businesses do not have to report payments of $10K or more in digital assets until both agencies have issued proposed regulations

Unusual Whales

Jan 18, 2024 • 1 min read

The IRS and the US Treasury have said businesses do not have to report payments of $10K or more in digital assets until both agencies have issued proposed regulations, per FOX.

This update follows a prior announcement from the agencies, which clarified that businesses are not currently required to report digital asset transactions in the same manner as cash transactions.

Initially, the Infrastructure Investment and Jobs Act, effective January 1, mandated businesses to report cryptocurrency transactions over $10,000, treating them similarly to cash transactions. The objective was to align reporting standards for digital assets with those for cash.

However, with the latest announcement, the pre-existing rules in place before the Infrastructure Investment and Jobs Act will persist. According to these regulations, cash transactions exceeding $10,000 received in the course of business must be reported using Form 8300, known as "Report of Cash Payments over $10,000 Received in a Trade or Business." Such reports should be submitted within 15 days of the transaction.

The IRS stated, "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."

In 2022, Coin Center, a prominent cryptocurrency advocacy group, filed a lawsuit against the IRS and the Treasury challenging the constitutionality of a cryptocurrency tax-reporting mandate in recent infrastructure legislation.

The legal action targeted a specific provision of the law that, if enacted, would require businesses and individuals to report any cryptocurrency transactions exceeding $10,000. Coin Center argued that the implementation of this rule would essentially create a sweeping surveillance system, impacting the average American.

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