The IRS has hired 2 private sector crypto experts to prepare for tax season.
The United States Internal Revenue Service (IRS) has appointed two new crypto tax experts from the private sector to focus on digital assets.
The official tax filing season in the US began on January 29, after which the IRS has repeatedly issued reminders urging citizens to report all income from cryptocurrencies and digital assets, including non-volatile tokens (NFTs). As shown below, crypto received in the form of rewards or staking must be reported in addition to other areas.
Two new IRS recruits, Sulolit Mukherjee and Seth Wilkes, have been hired as the department's executive counsel, the IRS said. He added:
“With extensive experience in the tax and crypto industries, the pair will help lead the IRS's efforts in digital asset-focused services, reporting, compliance and enforcement programs.”
IRS Commissioner Danny Werfel believes that expertise from the private sector can help the department successfully build a digital assets infrastructure “in a way that's good for everyone.”
The IRS uses IRA funding — a federal law aimed at curbing inflation — to build compliance in emerging areas, including digital assets.
It should be noted that taxpayers in the US are not required to report cryptocurrencies held in wallets, transferred between two wallets owned by the same person, or purchased with fiat currency.
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Before the start of tax season, on January 17th, the IRS said that cryptocurrency transactions above $10,000 should not be reported. The department plans to implement the regulation after releasing the regulatory framework.
The ruling overturns a new law enacted on January 1, which required all US businesses to report cryptocurrency transactions of more than $10,000. The IRS states:
“Currently, digital assets are not required to be included when determining whether cash received in a single transaction (or two or more related transactions) meets the reporting threshold.”
The US House Financial Services Committee has identified several fundamental problems with the “poorly constructed digital asset reporting requirements” passed on January 1.
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