Crypto Community Sings Unhappy Tune Over ‘Stupid’ IRS Reporting Requirements
Community members have expressed their displeasure over new rules that require crypto users to report transactions worth more than $10,000 to the Internal Revenue Service (IRS) through social media posts and songs.
The new crypto tax reporting obligations for US citizens went into effect on January 1st. The rules require crypto brokers to send personal information to the IRS on transactions worth more than $10,000. This includes information such as the sender's name, address and social security number.
The law has set a time limit of 15 days to complete the report. However, such requirements can be challenging to meet, due to the nature of chain transactions, said Jerry Brito, executive director of the Coin Center. Many users, he said, would be “difficult to comply” because they could be found guilty of a crime.
In addition to Brito, community members are dismayed by the law. Adriano Feria called the law “stupid” and the officials who created it “stupid”. In X's (Twitter) post, Feria said the IRS should be told the transactions are “push only” and will not be rejected by the recipient.
Someone should tell the IRS that there is no such thing as “accepting” a crypto payment. Transactions are push only and cannot be rejected by the recipient.
Anyone in the world can send SEC chief Danny Werfel over $10k in crypto and he'll almost certainly be a criminal…
— AdrianoFeria.eth ️ (@AdrianoFeria) January 4, 2024
The community member emphasized that there is no such thing as accepting crypto payments. For example, Feria said that anyone could send US Internal Revenue Commissioner Daniel Werfel $10,000 in crypto, and that he would be “inevitably a criminal.”
Ryan Adams, co-founder of Mythos Capital and Bankless Investments, echoed his sentiments, stressing in his post on X that there are no guidelines for filing the report. On the other hand, some interpret the law as a way to prevent people from selling their cryptos.
Meanwhile, crypto singer Jonathan Mann described the law as “draconian” and wrote a song about it. In the lyrics, Mann revealed that his songs were sold for 5.3 Ether (ETH), one of the intangible tokens (NFT) worth more than $10,000.
In response to the new IRS rule making it a felony to receive 10k or more in crypto:
“This song is a crime.”
Collecting for .001: pic.twitter.com/IbuspEbWcF
— 15 years of singing a day (@songadaymann) January 3, 2024
As the singer explains in the song, their details are not available except for the name of the buyer's ENS, which indicates that in this case it is impossible to give the real name, address and social security number of the crypto sender. “Now there's a law on the books that says it's a crime to accept money in exchange for a song, which I did,” he sang.
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