Ethereum

Cryptocurrency

Biden

Pepe Chain

Pepe

The US Treasury Department and the IRS have finalized new regulations requiring cryptocurrency platforms to report users’ transactions to the IRS starting in 2026. This measure is part of the <a href="https://www.instagram.com/reel/C8v_8e8uXDx/?utm_source=ig_web_copy_link&amp;igsh=MzRlODBiNWFlZA==">Biden Administration’s</a> Infrastructure Investment and Jobs Act, which was passed in 2021. 
The goal of the new regulations is to ensure that gains from selling cryptocurrency and other digital assets are accurately reported to both individual investors and the government. Previously, there was no standardized method for reporting these gains. Beginning in 2026, for transactions conducted in 2025, cryptocurrency platforms will be required to provide a standard 1099 form, similar to those used by banks and traditional brokerages. This new requirement aims to simplify the tax filing process for cryptocurrency users. 
The IRS has emphasized that these regulations are also intended to combat tax evasion. According to IRS Commissioner Danny Werfel: 
<blockquote> 
 We need to make sure digital assets are not used to hide taxable income, and these final regulations will improve detection of noncompliance in the high-risk space of digital assets. 
</blockquote> 
It is important to note that the new regulations apply only to custodial platforms, such as Coinbase and Binance, which take possession of customer assets. <a href="https://insidebitcoins.com/buy-cryptocurrency/best-defi-coins">Decentralized platforms</a> that do not hold assets will be exempt from these rules. This exemption came after significant lobbying efforts from the crypto industry. The Blockchain Association, a lobbying group for the industry, praised this exclusion, describing it as “a testament to the incredibly powerful voice of our industry and community.” 
These regulations are part of a broader effort by the IRS to increase transparency and accountability in the <a href="https://insidebitcoins.com/buy-cryptocurrency/new-cryptocurrency">cryptocurrency market</a>. By mandating accurate reporting from platforms, the IRS will have improved oversight of the digital asset market, which could potentially reduce instances of tax evasion by wealthy investors. The introduction of the 1099-DA form is intended to make tax filing more straightforward for cryptocurrency users, providing them with the necessary documentation to comply with tax laws. 
While gains from cryptocurrency transactions have always been taxable, the new regulations by the US Treasury and IRS aim to enforce accurate reporting and simplify the tax process for users. This initiative reflects a significant step toward enhancing tax compliance and reducing evasion in the rapidly growing digital asset market. 
<h2 id="crypto-tax-reporting-in-other-countries">Crypto Tax Reporting in Other Countries</h2> 
In other countries such as nearby Canada, cryptocurrency exchanges are required to adhere to strict reporting requirements to ensure compliance with tax laws. The Canada Revenue Agency (CRA) mandates that exchanges must keep detailed records of all transactions, including the dates, amounts, and values in Canadian dollars at the time of each transaction. This information is crucial for individuals to accurately report their crypto income or capital gains. 
Similarly, in the <a href="https://www.twobirds.com/en/insights/2024/global/markets-in-crypto-assets-new-eu-law-on-crypto-assets">European Union (EU)</a>, exchanges are also subject to rigorous reporting standards. They must provide detailed transaction records to ensure that users can comply with national tax obligations. Each EU member state has specific regulations, but the general requirement is that exchanges report all crypto transactions, which assists in calculating the appropriate capital gains tax. The EU is working towards more unified regulations to standardize these reporting requirements across member states, aiming for greater transparency and consistency in crypto taxation. 
<h3 id="img-decoding-async-class-aligncenter-wp-image-540859-size-full-src-https-insidebitcoins-com-wp-content-uploads-2024-06-pepu-png-alt-width-1080-height-360-srcset-https-insidebitcoins-com-wp-content-uploads-2024-06-pepu-png-1080w-https-insidebitcoins-com-wp-content-uploads-2024-06-pepu-300x100-png-300w-https-insidebitcoins-com-wp-content-uploads-2024-06-pepu-1024x341-png-1024w-https-insidebitcoins-com-wp-content-uploads-2024-06-pepu-768x256-png-768w-sizes-max-width-1080px-100vw-1080px"><img decoding="async" class="aligncenter wp-image-540859 size-full" src="https://insidebitcoins.com/wp-content/uploads/2024/06/PEPU.png" alt="" width="1080" height="360" srcset="https://insidebitcoins.com/wp-content/uploads/2024/06/PEPU.png 1080w, https://insidebitcoins.com/wp-content/uploads/2024/06/PEPU-300x100.png 300w, https://insidebitcoins.com/wp-content/uploads/2024/06/PEPU-1024x341.png 1024w, https://insidebitcoins.com/wp-content/uploads/2024/06/PEPU-768x256.png 768w" sizes="(max-width: 1080px) 100vw, 1080px"></h3> 
<h2 class="p1" id="pepe-unchained-a-promising-presale-project-with-innovative-layer-2-solutions">Pepe Unchained: A Promising Presale Project with Innovative Layer 2 Solutions</h2> 
Launched in June 2024, <a href="https://insidebitcoins.com/visit/pepeunchained" rel="nofollow">Pepe Unchained leverages advanced Layer 2 technology</a>, marking a significant improvement over traditional Ethereum-based projects. This strategic use of Layer 2 scaling solutions not only enhances transaction speeds but also addresses major pain points such as high fees and network congestion, making transactions potentially 100 times faster than on Ethereum. 
Pepe Unchained’s commitment to efficiency and user experience is highlighted by its near-instant transaction finality, allowing traders to quickly capitalize on market opportunities without delays or failed orders. Additionally, the project introduces a dedicated block explorer for enhanced transparency, enabling users to track transactions seamlessly. 
While the technical aspects of Pepe Unchained are impressive, the project also embraces its meme coin roots with a playful yet forward-thinking ethos. The recent popularity of the Pepe theme, which has reached an all-time high, adds to its appeal and attracts a broad range of investors. 
An additional allure of Pepe Unchained lies in its presale offering, which includes a compelling staking APY for early investors. This not only incentivizes participation but also indicates strong confidence in the project’s long-term viability and growth potential. <a href="https://insidebitcoins.com/visit/pepeunchained" rel="nofollow">The PEPU token, currently priced at $0.008, is set to increase after each stage of the presale</a>, which is structured in a tiered format. 
Supported by enthusiastic endorsements across social media platforms and the broader crypto community, Pepe Unchained stands out as a promising investment opportunity. Its seamless bridging capabilities between Ethereum and the Pepe Chain further enhance its appeal, potentially paving the way for broader cross-chain interactions and liquidity. 
The combination of technical prowess and strategic marketing through social media endorsements has positioned Pepe Unchained as a notable contender in the cryptocurrency market. The project’s innovative use of Layer 2 solutions, coupled with its engaging theme and strong community support, suggests a bright future for both early investors and the broader crypto community. 
<a href="https://insidebitcoins.com/visit/pepeunchained" class="su-button su-button-style-3d" style="color:#000000;background-color:#F9A602;border-color:#c88502;border-radius:9px;-moz-border-radius:9px;-webkit-border-radius:9px" target="_self" rel="nofollow"><span style="color:#000000;padding:0px 24px;font-size:18px;line-height:36px;border-color:#fbc14e;border-radius:9px;-moz-border-radius:9px;-webkit-border-radius:9px;text-shadow:none;-moz-text-shadow:none;-webkit-text-shadow:none"> Visit Pepe Unchained Presale</a> 
Related News 
<ul class="ul1"> 
 <li class="li2"><a href="https://insidebitcoins.com/news/us-treasury-official-says-stablecoins-carry-a-potentially-big-risk">US Treasury official says stablecoins carry a “potentially big risk”</a></li> 
 <li class="li2"><a href="https://insidebitcoins.com/news/us-treasury-asks-congress-for-more-power-to-hunt-down-crypto-bad-actors-including-overseas">US Treasury Asks Congress For More Power To Hunt Down Crypto Bad Actors, Including Overseas</a></li> 
 <li class="li2"><a href="https://insidebitcoins.com/news/mercado-invests-an-undisclosed-amount-in-paxos-and-2tm"> Mercado invests an undisclosed amount in Paxos and 2TM</a></li> 
 <li class="li2"><a href="https://insidebitcoins.com/news/tether-commits-18-75m-to-xrex-group-for-financial-inclusion-and-innovation-in-emerging-markets">Tether Commits $18.75M to XREX Group for Financial Inclusion and Innovation in Emerging Markets</a></li> 
</ul>

New IRS Regulations for Cryptocurrency Tax Reporting to Take Effect in 2026

Table of Contents

Inside Bitcoins

Other articles published on Jul 1, 2024

Dogwifhat Surges to Top Meme Coin Spot, Outshining DOGE and SHIB

Bitcoin Price Prediction: Fear Turns to Greed? Analyst Predicts Bull Run

Bitcoin Positive July: Can It Ignite The Altcoin Season?

Solana Beats Them All In Daily NFT Sales – Becomes The Leading NFT Blockchain

Paxos Receives Approval to Issue Stablecoins in Singapore

Roaring Kitty Acquires 9M CHWY Shares, CHWY Sees 22% Surge

Join our free newsletter for daily crypto updates!