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. There is no other federal provision that can produce the same amount of tax dollars as this recently passed law. 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.
It Crypto community outragedThe measure was initially proposed. We tried hard to oppose it. The provisions were eventually passed despite some tweaking. While some people still talk about repeal efforts, it could be difficult to sell when the Biden administration has $28 billion at stake. As enacted, Form 1099 and other reporting rules don’t take effect until December 31, 2023. Nevertheless, Form 1099 reporting is done for each year in January. It means 2023 could be a very tax-intensive year.
Robert W. WoodHe is a tax attorney representing clients around the world from Wood LLP, San Francisco. He has written numerous tax books, and he frequently contributes to Forbes Tax Notes and other publications.
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