The US government is delaying collecting billions of dollars worth of crypto taxes to give firms in the industry more time to gather relevant information on their customers.
According to a new report the U.S. Treasury Department and the Internal Revenue Service (IRS) plan on delaying tax collection on digital assets until next January so crypto firms can begin tracking their customers’ capital gains and losses.
However, the report says that no final decisions have been made.
Last November, Congress passed a law mandating that crypto firms begin keeping detailed records of their clients’ trading data and reporting it to the IRS. The information is said to include customer names and addresses, gross proceeds from sales, and any capital gains or losses.
Michael Desmond, former chief counsel for the IRS and current attorney, said that the new rules “could be very helpful just to standardize the reporting and put it in a way that makes it easier to digest and put on a tax return.”
Prominent industry figureheads are saying that the regulations do not give enough time for crypto firms to comply.
Jake Chervinsky, head of the Blockchain Assocation advocacy group, said, “Given the broad scope of the tax provisions, uncertainty around implementation, and the short timeline before these new rules are set to take effect, we encourage the Treasury Department to extend the deadline for compliance.”
Have a prosperous holiday weekend, Keep the Faith!