Crypto Transactions Worth More Than $10,000 Must Be Reported to the US IRS
The recently passed infrastructure bill signed by President Joe Biden has gone into effect, bringing with it provisions that require the reporting of digital asset transactions worth more than $10,000 to the IRS.
This bipartisan bill was approved by Congress and signed into law in 2021, and it expands the responsibilities of brokers to report crypto transactions to the IRS.
Following the bill’s passage, there have been discussions among lawmakers about further legislation to address concerns over the difficulty and feasibility of collecting the required information from brokers.
The bill stipulates that crypto brokers must report personal information of the sender, such as name, address, and social security number, within 15 days of the transaction.
The aim of these requirements is to close the tax gap in the US, and they were initially set to go into effect in January 2023 with companies required to send reports to the IRS in 2024.
