The post IRS Reveals Final Draft For Crypto Broker Requirements appeared on BitcoinEthereumNews.com.

The Internal Revenue Service (IRS) did not include decentralized exchanges or self-custodial wallets under its crypto broker reporting requirements. The United States Internal Revenue Service (IRS) revealed its final draft of the new crypto broker reporting requirements on June 28, and clarified the scope of industry participants affected by the new rule changes. According to the IRS’ new reporting guidelines, decentralized exchanges and self-custody wallets will not be subject to the new reporting rules.  In the recent update, the IRS explained that it reviewed the widespread comments and complaints from industry respondents, ultimately deciding it needed “more time to consider the nuances” of completely decentralized networks. Moreover, stablecoins and tokenized real-world assets were not exempt from the government agency’s new reporting requirements and will be treated the same as other digital assets. In the wake of the new rule changes, IRS Commissioner Danny Werfel remarked on the need to close the tax gap posed by digital assets and potential non-compliance from high-net-worth individuals: “We need to make sure digital assets are not used to hide taxable income, and these final regulations will improve detection of noncompliance in the high-risk space of digital assets. Our research and experience demonstrate that third-party reporting improves compliance.” This motivation was previously shared by Werfel’s IRS colleague, criminal investigation chief Guy Ficco, who predicted that there would be an uptick in crypto tax evasion during the 2024 tax season. Industry Advocates Raise Concerns Industry advocacy groups, such as The Blockchain Association and The Chamber of Digital Commerce, have pushed back significantly against the IRS’ proposed broker rules over the past year. In 2023, The Blockchain Association sounded the alarm and objected to the IRS’ proposed broker reporting requirements, citing the fundamental incompatibility between the proposed rules and decentralized finance networks. More recently, The Blockchain Association…

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Filed under: News - @ June 30, 2024 5:10 am