Olde Hornet
Well-Known Member
In a significant shift in regulatory approach, American cryptocurrency users are now under heightened scrutiny from the Internal Revenue Service (IRS). A new mandate requires U.S. citizens to report any digital asset transactions worth more than $10,000 within 15 days. Failure to comply with this directive could result in felony charges, marking a stringent step towards cryptocurrency regulation in the United States.
This new requirement is part of the broader infrastructure bill signed into law by President Joe Biden in 2021. The legislation, aiming to bridge the tax gap in America, includes provisions that significantly affect how digital asset transactions are reported to the IRS. Particularly, it extends to brokers, crypto exchanges, and custodians the obligation to report transactions exceeding $10,000. However, the lack of clear filing instructions from the IRS has left many in a quandary about compliance.