The US Department of the Treasury, in conjunction with the tax authority, the Internal Revenue Service (IRS), has put forth a new regulation concerning #cryptocurrencies . This regulation primarily targets digital asset brokers and introduces several key modifications.

On August 29th, the announcement was made by the Small Business Administration's Advocacy Office. The proposed regulation would establish new reporting obligations for digital asset brokers. These responsibilities would apply to various entities within the cryptocurrency domain, including trading platforms, payment processors, and certain digital wallet providers.

 Starting from January 1st, 2025, brokers would be mandated to report gross revenues from the sale or exchange of crypto assets. Another provision, set to come into effect on January 1st, 2026, or later, will require brokers to disclose profits and losses incurred from cryptocurrency sales.

 Documents related to this proposal indicate that the new regulation is aimed at improving tax compliance. Consequently, the IRS would obtain more accurate information about taxpayers' incomes, streamlining oversight and simplifying the tax system.

 An intriguing step taken by the Department of the Treasury and the IRS is their call for small businesses to share their views on the impact of these regulations. A public hearing on this topic has been scheduled for November 7th, 2023.

 And what practical implications will the proposal bring? Upon approval of the new regulation, all brokers will be obligated to file tax returns using the new 1099-DA form and also provide their customers with detailed statements regarding their crypto asset incomes.

#Binance #bitcoin #ETH #SpaceCatch

 Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“