Cryptocurrency holders in the United States now have to be more conscious of their obligations to avoid potential severe consequences.
"The amendments made by this section shall apply to returns required to be filed, and statements required to be furnished, after December 31, 2023," the filing noted.
According to a recent report by Jerry Brito, the executive director of Coin Center, individuals in the US who have crypto holdings exceeding $10,000 USD equivalent must be aware of and comply with their tax reporting responsibilities.
"If you receive $10k or more in crypto you now have an obligation to report the transaction (including names, addresses, SS numbers, etc.) to the IRS within 15 days under threat of a felony charge.”
After BeInCrypto recently reported on new cryptocurrency tax regulations that will impact companies holding digital assets, it has become evident that there will be significant changes in the way taxes are applied to crypto holdings.
The Financial Accounting Standards Board (FASB) has implemented new regulations that mandate companies to assess the value of their cryptocurrency assets based on fair value.
By utilizing this measurement technique, which captures the current value of digital currencies such as Bitcoin and Ethereum, companies strive to obtain a more precise representation of the value of these assets. These rules will become effective in 2025, but companies also have the choice to adopt them earlier if they wish.
According to a report by BeInCrypto in April 2023, it was revealed that a significant majority of cryptocurrency investors managed to avoid paying taxes in 2022.
Based on research firm Divly, hardly anyone declared their crypto trading or investing activities to tax authorities last year.
"We estimate that globally just 0.53% of cryptocurrency investors declared their cryptocurrency activity to their local tax authorities in 2022.”
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