Cryptocurrency investors and brokerages are awaiting a U.S. tax rule that will come after.
It would regulate how cryptocurrency firms report information about clients’ tax status, similar to the 1099 forms traditional brokerages file.
Outlining profit and loss, it is understood that the Treasury Department’s Internal Revenue Service (IRS) actually finalized the proposal a few months ago, but the White House has been slow to start the internal review process.
Former IRS lawyer Miles Fuller said that the encryption tax rules are unlikely to take effect in 2024, because proposing, collecting public comments and finally implementing new tax rules is a process that usually takes several months or even longer and may be extended. to next year.
Coinbase tax lawyer Zlatkin said it was unrealistic to expect the rules to take effect on Jan. 1, 2024.
It’s not just a matter of industry adapting and complying, but a matter of the IRS preparing the system to absorb and analyze vast amounts of new data.