New Crypto Tax Duty Requires Diligence from US Citizens
US citizens who hold cryptocurrency are now facing a new obligation that demands their attention to avoid potentially severe consequences. Amendments to tax regulations state that, starting from January 2024, individuals must fulfill their tax reporting obligations if they hold more than $10,000 USD equivalent in crypto. Failure to comply with this requirement within 15 days of receiving $10k or more in crypto could result in felony charges. This development reinforces the ongoing efforts to regulate and tax the cryptocurrency market. In addition to these individual tax obligations, new rules introduced by the Financial Accounting Standards Board will require companies to measure their crypto assets at fair value, providing a more accurate depiction of their worth. These tax measures are aimed at tackling the widespread non-compliance of crypto investors, as research shows that only 0.53% of cryptocurrency investors declared their crypto activities to tax authorities in 2022. As the crypto landscape continues to evolve, it is crucial for US citizens to stay informed and fulfill their tax responsibilities to avoid legal repercussions.