IRS Extends Public Comment Period for Crypto Tax Reporting Rules Amid Mixed Reactions
Summary:
The US Internal Revenue Service (IRS) has extended the public commentary period on proposed cryptocurrency tax reporting rules till November 13. These include a new Form 1099-DA to simplify tax filing and reduce evasion. If enacted in 2026, the rules will impact transactions made in 2025. However, this proposal has faced mixed feedback, with many in the crypto community criticizing it as confusing and potentially detrimental to the industry, while some Senators are pushing for a quicker implementation.
In an announcement regarding proposed cryptocurrency tax reporting protocol, the US Internal Revenue Service (IRS) has allocated more time for the public to give feedback, extending the deadline to November 13. These proposals, titled "Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions", were first introduced to the public on August 29. Under these rules, brokerages would be obligated to utilize a new reporting form aimed at making tax filings more efficient and decreasing tax evasion.
The Treasury Department suggests the proposed Form 1099-DA will assist taxpayers in determining their tax obligations, eliminating the need for complex calculations or resorting to specialized digital asset tax preparation. The rules are anticipated to be enforced in 2026 and will influence sales and trades taking place in 2025.
Not all responses have been positive toward these proposed tax guidelines. Miller Whitehouse-Levine, DeFi Education Fund CEO, found the regulations confusing and misguided. Likewise, Blockchain Association CEO Kristin Smith emphasized the notable differences between the traditional financial sector and the cryptocurrency landscape.
Paul Singh Grewal, Chief Legal Officer of Coinbase, encourages the crypto community to strongly oppose these proposed regulations from the US Treasury, suggesting these changes could potentially hinder the growth of the burgeoning industry and pose a disadvantage for digital assets.
Conversely, some Senators, such as Elizabeth Warren and Bernie Sanders, along with five others, have applied pressure on the Treasury Department and IRS, urging them to expedite the rule. They voiced criticism over the anticipated two-year delay in imposing cryptocurrency tax reporting obligations.
Published At
10/25/2023 8:02:14 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.