Starting January 1, 2024, the Infrastructure Investment and Jobs Act, approved in November 2021, mandates that individuals or businesses receiving $10,000 or more in cryptocurrency during their trade or business must report the transaction to the IRS, according to insights from crypto policy advocate Coin Center.
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The report must encompass details like the sender’s name, address, social security number, transaction amount, and the transaction’s date and nature. Coin Center’s Executive Director, Jerry Brito, emphasized that this law applies to all Americans and that failing to report within 15 days could lead to felony charges.
Coin Center, a prominent non-profit organization addressing cryptocurrency policy matters, filed a lawsuit against the Treasury Department in June 2022, contesting the constitutionality of this crypto law. Despite ongoing legal proceedings, Brito cautioned that compliance is currently obligatory, though the methods are unclear.
Brito highlighted potential challenges, such as ambiguity in reporting block rewards exceeding $10,000 for miners or validators. He also questioned reporting responsibilities in decentralized crypto exchanges and anonymous crypto donations, citing the Treasury Department’s lack of guidance. The absence of a designated form for reporting crypto transactions and uncertainty regarding how cryptocurrency should be reported under existing forms, such as Form 8300, further complicates compliance.
Emphasizing that the law encompasses individuals, not just businesses, Brito clarified that miners, day traders, and even non-fungible token (NFT) artists are subject to the reporting requirement. However, the definition of “trade or business” remains unclear in the absence of precise Treasury guidance, leaving individuals uncertain about their compliance obligations.