US Government Revises Cryptocurrency Tax Reporting Rule, Eases Requirements for Businesses
The US Treasury Department and Internal Revenue Service (IRS) have made revisions to their controversial crypto tax reporting rule. Originally, the rule required extensive reporting for crypto transactions exceeding $10,000. However, the Treasury now states that businesses do not have to follow the same reporting requirements as cash for crypto transactions, at least until formal regulations are introduced.
In a recent statement, the Treasury Department clarified that digital asset transactions will not be subject to the same reporting requirements as cash until regulations are in place. The department plans to release regulations that will provide additional details and procedures for reporting the receipt of digital assets. The public will also have the opportunity to offer feedback through written submissions and participation in a public hearing.
This reversal of the rule comes shortly after its initial introduction. Just two weeks ago, it was reported that US citizens who receive $10,000 or more in crypto must report the transaction, including names and addresses, within 15 days.
The US government, in collaboration with the IRS, aims to tighten its grip on crypto taxpayers. They are exploring methods to ensure accurate reporting and payment of taxes on crypto profits. The recent rule changes also indicate a move towards standardizing crypto reporting, aligning it with traditional assets like securities and financial instruments.
The government’s stance on crypto has been contentious in recent years, with many industry leaders criticizing its regulation-by-enforcement approach. Major crypto exchanges like Binance and Coinbase have faced legal actions as a result. These exchanges argue that the lack of regulatory clarity makes it challenging to determine the best operational strategies for their businesses.
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