News

The IRS has extended the comment period on the crypto tax rule due to “strong public interest.”

single-image

The Treasury Department and the Internal Revenue Service have extended the deadline for submitting comments on their proposed crypto regulations by two weeks.

Advertisement

The Treasury Department has decided to extend the comment period for its proposed new crypto reporting guidelines by two weeks. Interested parties now have until mid-November to submit their comments to the tax authority.

According to a Federal Register document expected to be published on Oct. 25, the Treasury and Internal Revenue Service have extended out the comment deadline in response to the “strong public interest” in the rule since it was first suggested in August.

Advertisement

The proposed rule, which was published in late August 2023, proposes defining digital asset “brokers” as “trading platforms, digital asset payment processors, certain digital asset hosted wallet providers, and persons who regularly offer to redeem digital assets that were created or issued by that person.”

Notably, and much to the pleasure of many industry members, the authorities exempt individual miners and validators from the “broker” label. Nonetheless, if implemented, the laws will impose more duties on crypto firms, which many industry participants find concerning.

Stay in the know on crypto by frequently visiting Crypto News Today

“The proposed regulations, as written, would impose an incomprehensible and unduly burdensome set of new reporting requirements,” Coinbase’s vice president of tax Lawrence Zlatkin wrote earlier this month in a comment letter.

According to Zlatkin, the IRS will be “bombarded with data,” including insignificant transactions with “zero or negligible taxable income.”

The new rules require crypto brokers to follow the same rules as securities brokers, including as filing information returns and providing payee statements to all customers and traders.

In an effort to assist taxpayers in managing their tax obligations, the Treasury is also requesting that brokers give a new Form 1099-DA, a unique form for reporting non-employment income from digital assets, to all customers and clients.

Advertisement
Follow GappyCoin PreSale on Twitter, and ReCap for information and more.

According to Carlo D’Angelo, a crypto criminal defense attorney, the rules place enormous strain on firms. According to him, investors and clients should be aware that these restrictions would have an influence on their data.

“As currently drafted, these proposed regulations require consumers to disclose sensitive personal identifying information to any qualifying digital asset broker in order to effectuate a digital asset transaction,” D’Angelo wrote in his response to the proposal. “These digital asset brokers — who fall outside the scope of traditionally regulated securities brokers — would then be required to collect, store, and pass on that KYC (know your customer) information to the IRS in the form of a special 1099-DA reporting form.”

As part of President Biden’s Infrastructure Investment and Jobs Act, the Treasury and IRS were ordered in 2021 to write crypto regulations.

The public hearing on November 7 will go forward as planned, and if there is enough interest, a second hearing will be held on November 8. Requests to speak at the hearing must be received via email by October 30, according to the agency.CRYPTOCASTER® - DECENTRALIZED FREEDOM!


W

e hope you enjoyed this article. Before you move on, we invite you to consider supporting CryptoCaster’s journalism.

Billionaire owners like Elon Musk, Larry Fink (BlackRock), and Jamie Dimon (JP Morgan Chase) often have a strong influence on the hidden agendas surrounding the paradigm shift brought about by cryptocurrency and emerging Web3 technologies. CryptoCaster stands apart. We have no billionaire owner or shareholders to please. Our journalism is dedicated to serving the public interest in crypto development and institutional disruptions, not profit motives.

We avoid the pitfall of much U.S. and global media, which often resorts to false equivalence in the name of neutrality and retail consumer protection. While fairness and transparency guide everything we do, we recognize that there is a right and wrong stance in the fight against fiat global banking interests and the monetary reconstruction driven by the emerging crypto ecology.

When we report on issues like the FTX, Binance, and Ripple crises, we’re not afraid to name names and uncover the truth. As a crypto sentinel, we offer a fresh, outsider perspective on global monetary disruption—something often missing from the insular American and European media bubble.

CryptoCaster’s paywall-free journalism is accessible worldwide thanks to our unique reader-supported model. This is made possible by readers like you. Your support keeps us independent, free from outside influence, and accessible to everyone, regardless of their ability to pay for news and information.

We are grateful for the ongoing monetary support from our readers. If you haven’t yet considered supporting CryptoCaster, please consider contributing just once from $1 or more in Bitcoin (satoshi) or Ether, or even better, support us monthly with a bit more. Scroll further down this page to find CryptoCaster’s wallet addresses.

Thank you.

Kristin Steinbeck
Editor, CryptoCaster


Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.


Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt


CRYPTOCASTER HEATMAP


You may also like