The bipartisan infrastructure bill has now become a law that requires reporting crypto transactions greater than $10,000 to the Internal Revenue Service (IRS).
The rule has set off a buzz in the crypto community, as brokers now have to report transactions and the sender’s personal information—including the sender’s name, address, and social security number—to the government agency within 15 days.
While this new rule was initially scheduled to become legal in January 2023, it was later delayed to come into action in 2024.
The bill was also questioned for having additional legislative requirements when it was introduced in 2021 and signed by President Biden, with several lawmakers asking to fix reporting requirements as the required information might be difficult or even impossible to collect from the transaction sender.
According to Jerry Brito, the Executive Director of Coin Center, if you receive $10k or more in crypto, you are now obligated to report the transaction to the IRS, citing all the necessary sender information within 15 days under threat of a felony charge.
While arguing against the rule, Brito said, “What if you receive funds from a block reward or a DEX transaction? Who do you report as the sender?” Brito also noted that this new law does not apply to cash transactions but only to crypto payments.
Brito said that his firm, Coin Center, a non-profit company working for crypto policies, has challenged the bill in federal court, and the case is currently in appeals. “Unfortunately for the time being there is an obligation to comply – but it’s unclear how one can comply,” he said.
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