People who own and sell cryptocurrency already have to pay tax on the proceeds, but the new rules mean Confirm The new rules will require crypto platforms, including exchanges and payment processors, to report users’ transactions to the IRS. The Wall Street JournalOfficials hope the move will help the IRS get an accurate picture of how much tax people owe and thus deter tax evasion.
At the same time, the rule makes it much easier for people to report their income, since brokers must provide them with 1099 forms. The IRS 1099-DA form (Digital Asset Revenue from Brokered Transactions) was created last year specifically to track cryptocurrency transactions, with the final version due to be available shortly. Of note, the rule sets the threshold for reporting transactions involving stablecoins, which are cryptocurrencies that track fiat currencies such as the U.S. dollar, at $10,000.
“[I]”Digital asset investors and the IRS will have better access to the documentation they need to facilitate the filing and review of their tax returns,” Aviva Aron-Dine, acting assistant secretary for tax policy at the Treasury Department, said in a statement. “By implementing the law’s reporting requirements, these final rules will help taxpayers more easily pay the taxes they owe under current law while also reducing tax evasion by wealthy investors.”
The new rules only apply to platforms that hold digital assets, such as Coinbase and Binance. Decentralized platforms are not included, and will have to follow separate rules that are expected to be finalized later this year. Brokers will have to report digital asset sales proceeds starting in 2026 for all transactions completed in 2025, meaning crypto traders will be on their own in 2024.
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