Summary
The US Treasury Department and IRS have announced that businesses are not currently required to report the receipt of digital assets. The provision for reporting digital assets will not take effect until the Treasury and IRS issue regulations. The agencies have exempted individual miners and validators from the “broker” classification in proposed rules for digital assets. The Treasury intends to publish regulations and provide updated forms and instructions regarding the reporting of digital assets. Until then, these disclosures are not required.
Key Points
1. The US Treasury Department and Internal Revenue Service have announced that businesses are not currently required to report the receipt of digital assets, as regulations are yet to be issued.
2. The Infrastructure Investment and Jobs Act enacted in 2021 mandates that taxpayers engaged in a trade or business must report the receipt of cash, including digital assets, when the value exceeds $10,000. However, this provision will not be enforced until the Treasury and IRS issue regulations.
3. The Treasury and IRS plan to prescribe regulations and provide additional information and procedures for reporting the receipt of digital assets, but no specific deadline or timeline has been given. Until then, businesses are not obligated to disclose such transactions.