Crypto Tax: DeFi To See Reporting Rules By The IRS

CoinMarketCap2024-12-28

The U.S. Internal Revenue Service (IRS) has officially announced a new crypto tax regulation for the front-end service providers who identify as brokers in the Decentralized Finance (DeFi) industry. ...

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There will be reminders for the that their crypto transactions will be taxable.According to Aviva Aron-Dine, Performing the Duties of Assistant Secretary for Tax Policy,The new regulation will impact approximately 650 to 875 decentralized finance brokers. It may contribute to reshaping the operational aspect of the decentralized exchange platforms.The crypto le","collect":0,"end_time":0,"defaultTopTitle":"coinmarketcap.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4233":"房地产运营公司","IRS":"IRSA Inversiones y Representacio","BK4205":"房地产经营公司"},"translate_title":"加密货币税：DeFi将看到IRS的报告规则","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IRS":1},"content_text":"The U.S. Internal Revenue Service (IRS) has officially announced a new crypto tax regulation for the front-end service providers who identify as brokers in the Decentralized Finance (DeFi) industry.\nThe regulation will come into effect from January 1, 2027, intended to create crypto taxes that are comparable to the traditional ones.\nThe DeFi brokers must issue crypto tax forms, collect trading information of users, and provide customers’ names, addresses, and other information.\nThe official Press Release shared by the U.S. Department of the Treasury stated that the DeFi brokers will need to provide a Form 1099 to the owner of a digital asset. There will be reminders for the that their crypto transactions will be taxable.\nThis will reduce the number of errors or non-compliance issues on the federal income tax returns of the taxpayer. Additionally, it will save their time and money while filing the tax.\nAccording to Aviva Aron-Dine, Performing the Duties of Assistant Secretary for Tax Policy,\n\n“These regulations will help ensure that all taxpayers play by the same set of rules and have access to the information they need to file their taxes accurately. Aligning tax reporting requirements for digital assets with reporting for other assets will make filing easier and cheaper for compliant taxpayers while also helping close the tax gap.”\n\nRegulations to Affect Hundreds of DeFi Brokers \nThe new regulation will impact approximately 650 to 875 decentralized finance brokers. It may contribute to reshaping the operational aspect of the decentralized exchange platforms.\nThe U.S. Internal Revenue Service clarified that the regulation is not applicable to hardware manufacturers or internet service providers. However, their statement of defining the decentralized finance front-end service providers as “brokers” indicates the potential strict regulatory environment.\nThis government action regarding crypto tax signals the potential challenges related to compliance and greater scrutiny for crypto users and platforms.\nCrypto Community Criticizes the Crypto Tax Regulation\nThe crypto leaders and community are criticizing the new regulation for the decentralized finance industry similar to traditional brokers.\nThe Blockchain Association, DeFi Education Fund, and Texas Blockchain Council have filed a lawsuit against the IRS’s broker rulemaking.\n\n\n\n   Source: X\n  \n\n\nKatherine Minarik, Uniswap’s Chief Legal Officer shared a tweet saying that the new regulation by the Internal Revenue Service should be challenged.\n\n\n\n   Source: X\n  \n\n\nCEO of Uniswap Labs, Hayden Adams criticized the IRS rules and anticipates that the regulation will be dissolved through the Congressional Review Act.\n\n\n\n   Source: X\n  \n\n\nThe post Crypto Tax: DeFi To See Reporting Rules By The IRS appeared first on The Coin Republic.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2494314831"}