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<ul>
 <li>New US Treasury rules mandate custodial crypto brokers to report transactions, aiming to curb tax evasion.</li>
 <li>Form 1099-DA will reflect crypto transactions from 2025.</li>
 <li>Regulations exclude non-custodial brokers, focusing on transparency and compliance in digital assets.</li>
</ul>
<p>The US Treasury has finalized new regulations requiring custodial crypto brokers, such as exchanges and payment processors, to report digital asset sales and trades to the <a href="https://www.irs.gov/" target="_blank" rel="noopener noreferrer nofollow">IRS</a>. This move is aimed to combat crypto tax evasion and is as a result of extensive public feedback.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr">The US Treasury and IRS are cracking down on crypto taxes! <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f575-fe0f-200d-2640-fe0f.png" alt="🕵️‍♀️" class="wp-smiley" style="height: 1em; max-height: 1em;"> New reporting rules for crypto brokers starting in 2025, but DeFi platforms get a temporary pass. <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f914.png" alt="🤔" class="wp-smiley" style="height: 1em; max-height: 1em;"> Lawmakers and the crypto community are still debating the details. Stay tuned for more updates! <a href="https://twitter.com/hashtag/cryptotaxes?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#cryptotaxes</a> <a href="https://twitter.com/hashtag/DeFi?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#DeFi</a>…</p>— Notoko (@notoko_motoko) <a href="https://twitter.com/notoko_motoko/status/1806854078338932946?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 29, 2024</a>
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<p>The purpose of the new reporting requirements is to enable accurate tax filings on transactions involving digital assets that are already taxable under existing legislation. The newly introduced Form 1099-DA will be used to report cryptocurrency transactions starting in 2025, ensuring transparency for the tax year 2025.</p>
<p>These regulations, which are consistent with provisions in the Infrastructure Investment and Jobs Act of 2021, specifically exclude decentralized or non-custodial brokers who do not deal with digital assets directly. Separate guidelines will govern their reporting requirements, ensuring extensive oversight across the various operational models in the crypto sector.</p>
<p>The regulations also improve <a href="https://cryptonewsland.com/debt-ceiling-woes-is-crypto-the-savior-of-u-s-financial-woes/" target="_blank" rel="noopener noreferrer nofollow">clarity and compliance in the financial landscape</a> by providing guidelines for taxpayers to calculate their basis, gains, and losses from transactions involving digital assets in addition to broker reporting.</p>
<p>In order to create a balanced regulatory environment that encourages innovation and accountability in the developing crypto economy, stakeholders will need to continue working to streamline reporting procedures and address privacy concerns as they <a href="https://cryptonewsland.com/us-crypto-crackdown-may-propel-hong-kong-to-crypto-hub-status/" target="_blank" rel="noopener noreferrer nofollow">navigate the new regulations</a>.</p>
<p>The <a href="https://home.treasury.gov/" target="_blank" rel="noopener noreferrer nofollow">US Treasury’s</a> new regulations represent a significant step toward increasing transparency and compliance in the digital asset market. These measures, which require custodial crypto brokers to report transactions to the IRS, seek to prevent tax evasion and ensure that digital asset transactions are accurately reflected in tax filings.</p>
<h4 class="wp-block-heading" id="h-read-also">Read Also</h4>
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 <li><a href="https://cryptonewsland.com/irs-temporarily-suspends-10000-crypto-reporting-for-businesses/" rel="noopener noreferrer nofollow">IRS Temporarily Suspends $10,000 Crypto Reporting for Businesses</a></li>
 <li><a href="https://cryptonewsland.com/blockchain-association-criticizes-irs-broker-rule-for-excessive-costs/" rel="noopener noreferrer nofollow">Blockchain Association Criticizes IRS Broker Rule for Excessive Costs</a></li>
 <li><a href="https://cryptonewsland.com/ftx-navigates-24-billion-irs-claim-settles-for-885-million-amid-bankruptcy/" rel="noopener noreferrer nofollow">FTX Navigates $24 Billion IRS Claim: Settles for $885 Million Amid Bankruptcy</a></li>
 <li><a href="https://cryptonewsland.com/u-s-brokers-penetrates-the-hongkong-crypto-market/" rel="noopener noreferrer nofollow">U.S. Brokers Penetrates the Hongkong Crypto Market</a></li>
</ul>
<p>The post <a href="https://cryptonewsland.com/us-treasury-mandates-crypto-broker-reporting-to-irs-enhancing-tax-compliance-and-transparency/" rel="noopener noreferrer nofollow">US Treasury Mandates Crypto Broker Reporting to IRS, Enhancing Tax Compliance and Transparency</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

US Treasury Mandates Crypto Broker Reporting to IRS, Enhancing Tax Compliance and Transparency

Crypto News Land

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