New Rule Requires Crypto Transactions Over $10,000 to Be Reported to the IRS

The crackdown on crypto continues. As part of President Joe Biden’s 2021 Infrastructure Investment and Jobs ACT, the Internal Revenue Service (IRS) will start requiring that all cryptocurrency transactions over $10,000 be reported.

New tax reporting requirements demand businesses receiving over $10,000 in cryptocurrencies to promptly disclose transaction details, including the sender’s name, address, and Social Security number (SSN), alongside transaction amount, date, and nature. 

The specific mandate, called rule 6050I, was originally added as a way to reduce the possibility of crypto being used in money laundering, tax evasion, and funding terrorism

Enacted on January 1, 2024, under the infrastructure bill signed by Biden in November 2021, this rule mandates a 15-day reporting window post-transaction, with non-compliance potentially resulting in felony charges. The self-executing nature of the rule ensures immediate enforceability.

However, crypto advocacy group CoinCenter contests the regulation, citing difficulties in compliance and labeling the obligation as unconstitutional. They point out challenges faced by blockchain miners, validators, and users engaging in decentralized exchanges where identifiable senders may be absent. 

CoinCenter also criticizes the ambiguity in determining cryptocurrency values and raises concerns about reporting when receiving anonymous donations. Having filed a lawsuit against the US Treasury in June 2022, CoinCenter’s legal challenge to the constitutionality of these rules remains unresolved in the courts.

“Unfortunately for the time being there is an obligation to comply – but it’s unclear how one can comply,” CoinCenter executive director Jerry Brito added. He also posted an explanation of who will be affected by the new rule. 


Information for this story was found via Yahoo, Coindesk, Jerry Brito on X, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

MicroStrategy Increases Bitcoin Holdings To 140,000 After Latest $29.3 Million Purchase

Michael Saylor’s MicroStrategy (NASDAQ: MSTR) appears to be doing what it can to prop up...

Wednesday, April 5, 2023, 08:43:56 AM

State Senator Wendy Rogers Proposes to Make Bitcoin Legal Tender in Arizona

Arizona State Senator Wendy Rogers on Wednesday introduced a set of bills that seek to...

Thursday, January 26, 2023, 10:31:00 AM

SEC Has A Questionnaire For Companies To Disclose Crypto Exposure

The Securities and Exchange Commission is pushing corporations to clarify their exposure to distressed crypto...

Friday, December 9, 2022, 12:01:00 PM

India Mulling Total Cryptocurrency Ban

As Bitcoin soared to a new high of US$60,000 over the weekend before slumping to...

Tuesday, March 16, 2021, 10:26:00 AM

Frank Holmes: The Rising Tide Of Commodities – The Daily Dive

For this weeks final episode of The Daily Dive, we’re joined by Frank Holmes, CEO...

Friday, January 29, 2021, 02:35:37 PM