Under the IRS' latest tax rule, anyone considered a digital asset broker must prepare Form 1099-DA for customers who sell or exchange digital assets to ensure all gains and losses are being reported.
Partnering with Chainalysis, the IRS insisted on the need for digital asset sales to be reported on businesses' tax returns, threatening evaders with repercussions for non-compliance.
The IRS has hired Sulolit “Raj” Mukherjee, formerly with Coinbase and Binance.US, where he led tax compliance efforts, and ex-TaxBit vice president Seth Wilks.
New rules mandating firms to report digital asset transactions of over $100K won't take effect for now, with the IRS wanting to issue specific guidelines first on how they will be enforced.
Many brokers are expected to have difficulty complying with the IRS' new tax rules, which took effect on January 1, with pundits claiming that much of the data needed would be impossible to collect.
Feedback on the proposed digital asset tax reporting rules has been extended until November 13, according to the IRS, which crafted the regulations to curb tax evasion in the asset class.
A letter from U.S. lawmakers called out the Treasury Department and the IRS for their delay in enforcing digital asset tax requirements, stressing that the setback leads to a massive loss in revenue.
Authorities in South Korea aim to recover unpaid taxes by seizing digital currencies from tax evaders in Cheongju via legal measures.
As the crackdown on tax evasion continues, the U.S. Treasury Department is lobbying for stringent regulations, which would include the disclosure of users' trading activity to the IRS.
Once an investor has dominion and control over the staking rewards, they become taxable income, says the IRS in latest ruling, despite SEC’s staking crackdown.
Following the rejection of Kraken’s opposition to the IRS request, the exchange is now obliged to hand over 160M transaction records and provide information on 59,351 accounts to the tax agency.
The three have partnered with the Office for US Attorneys and Postal Inspection Service to target crypto drug trafficking, money laundering, child exploitation.
