Get the scoop on finance - sign up for mobile alerts
Regulators
| On
June 29, 2022

IRS Forced To Delay Crypto Tax Collection As Industry Struggles With New Rules: Report

By Daily Hodl Staff

The US government is reportedly delaying collecting billions of dollars worth of crypto taxes to give firms in the industry more time to gather relevant information on their customers.

According to a new report by Bloomberg, The U.S. Treasury Department and the Internal Revenue Service (IRS) plan on delaying tax collection on digital assets until next January so crypto firms can begin tracking their customers’ capital gains and losses.

ADVERTISEMENT

However, the report says that no final decisions have been made.

Last November, Congress passed a law mandating that crypto firms begin keeping detailed records of their clients’ trading data and reporting it to the IRS. The information is said to include customer names and addresses, gross proceeds from sales, and any capital gains or losses.

Michael Desmond, former chief counsel for the IRS and current attorney, told Bloomberg that the new rules “could be very helpful just to standardize the reporting and put it in a way that makes it easier to digest and put on a tax return.”

Prominent industry figureheads are saying that the regulations don’t give enough time for crypto firms to comply.

ADVERTISEMENT

Jake Chervinsky, head of the Blockchain Assocation advocacy group, told Bloomberg,

“Given the broad scope of the tax provisions, uncertainty around implementation, and the short timeline before these new rules are set to take effect, we encourage the Treasury Department to extend the deadline for compliance.”

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix

&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Hoowy/80’s Child