IRS Proposes New Reporting Requirements for Digital Assets
Recently proposed regulations could significantly impact the way brokers handle and report digital asset sales and exchanges. This move aims to enhance transparency and oversight in the increasingly popular digital asset space.
Department of Justice Pursuing Cryptocurrency Users
According to a recent press release from the Department of Justice (DOJ), a federal court in California issued an order authorizing the IRS to serve a “John Doe summons” on SFOX, a cryptocurrency dealer headquartered in Los Angeles. The order requires SFOX to provide the IRS with data on U.S. taxpayers who conducted at least $20,000 in cryptocurrency transactions between 2016 and 2021 with the company.
Tax Changes for Crypto Investors
In another recent development, the IRS Chief Counsel’s office issued Advice 202124008, which states that exchanges of bitcoin for certain other crypto assets did not qualify for gain nonrecognition as like-kind exchanges under Section 1031.