Since January 1st, the Infrastructure Investment and Jobs Act of the United States has been in effect, requiring anyone conducting cryptocurrency transactions for business or trade purposes with a value exceeding $10,000 to report them to the tax authorities. This expands the previous requirement of reporting only cash transactions or equivalents, such as foreign currencies or cashier’s checks.
This initiative is a government push that has been in motion since the early stages, with the US Department of the Treasury proposing this regulation in mid-2021. In addition to the mandatory reporting of cryptocurrency transactions, the US Internal Revenue Service has also shifted towards electronic reporting, eliminating the option of paper notifications for those who used to report cash transactions. However, certain groups, such as religious organizations, are exempt from this electronic reporting requirement.
These transactions must be reported using Form 8300, with the party receiving the funds being responsible for the notification. The information to be reported is quite detailed, including the recipient’s name, address, date of birth, taxpayer identification number, and transaction type.
TLDR: The Infrastructure Investment and Jobs Act now mandates the reporting of cryptocurrency transactions exceeding $10,000 for business or trade purposes. Individuals must use Form 8300 to report these transactions, providing detailed information about the recipient and transaction type. This regulation also shifts towards electronic reporting, eliminating the option of paper notifications, except for certain exempt groups.
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