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IPFS News Link • Bitcoin

New crypto tax reporting obligations took effect on new year's day

• Coin Center

Here's what you need to know and what we're doing about it

We wish you all a very happy new year! Unfortunately, the new year also brings a new law that is not only unconstitutional but also virtually impossible to comply with as a result of inaction from the IRS. It is important that every crypto user is aware of the pitfalls that have been created as this law is now in effect. 

The Infrastructure Investment and Jobs Act, which passed Congress in November of 2021, included a provision amending the Tax Code to require anyone who receives $10,000 or more in cryptocurrency in the course of their trade or business to make a report to the IRS about that transaction. The report must include, among other things, the name, address, and Social Security number of the person from whom the funds were received, the amount received, and the date and nature of the transaction. If you don't file a report within 15 days of receiving the transaction, you could be found guilty of a felony offense.