US Treasury Fails to Launch Crypto Tax Reporting Rules

The US Treasury Department has not revealed when the cryptocurrency tax reporting rules will come into effect.

The United States Treasury Department, the national treasury and finance department of the federal government of the United States, has delayed the launch of crypto tax reporting rules.

The rules were supposed to come into effect in 2023 as a part of the Infrastructure Investment and Jobs Act, passed in November 2021. The rules were supposed to obligate crypto brokers to provide information about customer profits and losses in Form 1099-B.

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However, the US Treasury and the Internal Revenue Service (IRS) are delaying the rules as the IRS hasn’t provided a clear definition of what is “cryptocurrency broker” and what are businesses fall under this category. Nevertheless, the IRS hasn’t shared any guidelines about filling out Form 1099-B.

According to the statement issued by the United States Treasury Department, the Treasury and IRS intends to provide regulatory text, the explanation of proposed rules, address public comments and the date of the public hearing.

Nevertheless, the US Treasury stated that the final regulation will be launched only after considering public comments and testimonies in the public hearing.

The process will allow the Treasury Department and the IRS to accept comments from affected taxpayers, industries, and other interested parties and enable the public to meaningfully participate in the regulatory process. After careful consideration of all public comments received and all testimony at the public hearing, final regulations will be published.

Until the US Treasury and IRS issue final regulations, the brokers should “report gross proceeds and basis as required under existing law and regulations.” On top of that, the US Treasury added:

Brokers will not be required to report or furnish additional information with respect to dispositions of digital assets under section 6045, or issue additional statements under section 6045A, or file any returns with the IRS on transfers of digital assets under section 6045A(d) until those new final regulations under sections 6045 and 6045A are issued.

Despite tax rules not applying to brokers, customers still have to comply with the crypto tax provisions.

by Gile K. – Crypto Analyst, BitDegree

SOURCE: COIN JOURNAL