Thanks to the IRS, your favorite decentralized exchange may need to begin asking for your address, birthdate, and other personal information beginning in 2025.
The Internal Revenue Service or IRS is a public authority of Federal Government of the United States. The IRS is responsible for all tax collection and controls the implementation of tax legislation. The service was formed in 1862 and is headquartered in Washington, D.C.
There is currently an essential issue concerning the IRS with regards to the taxation of cryptocurrency. The organization has already announced that Bitcoin and other kinds of digital money are regarded as a possession, mining as a way of income, and the storing of cryptocurrency as equivalent to holding gold, meaning that everything should be taxed using the existing laws. Due to the IRS, if a Bitcoin owner came into possession of it by mining and then sold it, it is supposed to be considered 100% profit, which should be taxed between 15% and 20%, depending on its size. In addition to that, the IRS requested some large cryptocurrency exchange administrations for information about clients whose transactions were more than $20,000/year between 2013-2016.
The Blockchain Association claimed the U.S. Treasury overstepped its authority in proposing crypto tax rules difficult or impossible to follow by many in the space.6852
The information will be sent to the Internal Revenue Service in early November.9869
The proposed rules are supposed to come into effect in 2026, impacting sales and exchanges conducted in 2025.3672
The IRS is looking to require crypto service providers to collect unprecedented swaths of data about their users — including names and Social Security numbers.15877
The amicus brief was filed to support an appeal against the U.S. Internal Revenue Service in relation to a 2017 court order where Coinbase was forced to hand over data from more than 14,300 of its users.9676
The IRS proposed the new crypto tax reporting rules in August, and if approved, the new crypto tax regime will come into effect from January 2026.3817
SBF’s former girlfriend admits to fraud during her time as CEO of Alameda Research.25868
The crypto tax reporting requirements proposed by the IRS in August are scheduled to go into effect in 2026, but according to seven senators, that isn’t soon enough.7873
Brokers — referred to as “digital asset middlemen” in the regulatory proposal — will be required to provide information on gains and losses incurred during the sale of crypto assets.3296
The United States Internal Revenue Service has released proposed regulations on the sale and exchange of digital assets by brokers.26329
House Financial Service Committee Chair Patrick McHenry said the rules are part of “the Biden Administration’s ongoing attack on the digital asset ecosystem.”5588
The crypto advocacy group’s suggestions included a de minimis exemption for crypto transactions and having the IRS provide guidance on block rewards, airdrops and hard forks.5024
A body representing FTX customers said it is “extremely disappointed” by the company’s reorganization plan.7014
United States senators, including Elizabeth Warren and Bernie Sanders, have claimed that crypto tax evaders are siphoning off billions from the government.6112