US Firms on Notice: IRS Mandates Reporting Cryptocurrency Transactions
In a recent development, the Internal Revenue Service (IRS) of the United States has declared a temporary suspension of the enforcement of reporting requirements concerning cryptocurrency transactions surpassing $10,000. This decision is a response to revisions made to the Infrastructure Investment and Jobs Act (IIJ Act) by the Treasury and the IRS. Despite the law coming into effect on Jan. 1, which mandated all U.S. businesses to report such transactions, the IRS has opted to postpone enforcement. This is until a comprehensive regulatory framework is put in place. Temporary Reprieve for U.S. Businesses This temporary relief for U.S. businesses entails that, at present, digital assets will not be taken into account. Particularly when determining if a transaction meets the $10,000 reporting threshold. The purpose of this enforcement pause is to allow businesses sufficient time to adjust to the new rules. This however is without exposing them to unintended legal consequences. The c...