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Things to know (and fear) about new IRS crypto tax reporting -Breaking

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Infrastructure Investment and Jobs ActH.R. 3684Crypto is now in the spotlight, as Congress and the Internal Revenue Service try to grab huge tax dollars. Over the next 10 years, this reporting system is expected to bring in $28 billion. This federal law, which is massively enacted recently, does not contain any other provisions that could produce as many tax dollars. If you don’t think that means the IRS is coming for your crypto in a very big way and that Congress is trying hard to facilitate it, think again.

The The crypto community was furiousThe measure was initially proposed. We tried hard to oppose it. The provisions were eventually passed despite some tweaking. Although some are talking about a repeal effort still, that may prove difficult when there is $28 million that the Biden administration might need. As enacted, Form 1099 and other reporting rules don’t take effect until December 31, 2023. Form 1099 forms are completed in January of the previous year. This means that 2023 is a significant tax year.

Robert W. WoodWood LLP is a San Francisco-based tax law firm that represents clients all over the globe. He serves as a managing partner. His books include numerous tax publications. He also writes frequently about taxes for Forbes and Tax Notes.