Trump signs the reporting of encrypted reports, but there are still thorny tax cases

Since 2014, the Tax Authority has focused on tax transaction and tax reports issues and become more severe. The Tax Authority was forced to face digital assets and submit a number of reporting requirements for exchange holders and others. Now, President Trump has taken a step from the required reports and the championship by signing HJ accuracy. 25.

The new law cancels a set of regulations made by President Biden in 2024, which requires decentralized financial brokers to report Form 1099-DA“Digital assets revenue from mediator transactions.” The new form and requirements were controversial from the beginning, in part due to the fact that submitting this model will reveal the identity of the digital origin to the Tax Authority. Any model 1099 to report income-such as the model 1099-MISC and the 1099-NEC model of this matter, with the social security number for the recipient so that computers from the Tax Authority can check the tax decisions.

Everyone must report their income, and this income includes encryption transactions. However, many taxpayers in privacy are reluctant to detect more information to the government. Some people in the encryption community are particularly concerned about this issue. The brokers are still vulnerable to reviewing their encryption sales, including via a John du callWhich were widely used by the government with Coinbase, Kraken and other exchanges. The idea is to get the details of the account holder directly from exchanges.

One of the great features that the government sought to earn a report of the 1099 model is the ease with which reports can be verified by matching the computer. If the amounts reported in the 1099 model do not coincide with the amounts on tax decisions, the contradictions can be determined quickly. The Committee on the Joint Taxes in Congress estimated that the decline in these regulations could add to up to up 3.9 billion dollars To the federal deficit for ten years. The reporting requirements that have been discussed long will be reviewed later Departments.

However, the draft law was approved under the Congress Review Law, which prevents the Tax Authority from issuing new bases that are largely similar to replacing the rules that were canceled without passing through Congress first. Until Congress moves away from its current position, it is unlikely to see the requirements for preparing similar reports.

But this does not mean that reporting the encryption tax has been given or easy. The Tax Authority announced in 2014 (2014-21 noticeIt is for tax purposes, the cryptocurrency is not a currency, as it is ownership. Since Crypto is dealt with as property (for example, stocks or real estate), taxpayers pay taxes if they realize a gain, but they may also be able to claim losses when they achieve. As property, taxpayers must know when to buy encryption, their amount and what they have received. For stocks and real estate, this may be simple. For encryption, it can be more difficult.

Common questions about the Tax Authority indicate that all income, gain or loss that involves encryption should be reported regardless of the amount and regardless of whether you have received a W-2 or 1099 model. If you cannot prove your basis for the tax department, the Tax Authority will assume that your basis is zero. Many encryption investors make purchases several times over many years. Do not forget to ask the Tax Authority near the highest tax declarations as well.

Tax Tax Decisions, ask this basic question, with appropriate differences designed for companies, partnership, real estate and fixed taxpayers: “At any time during the time [tax year]Have you: (a) Receive (as a reward, grant, or payment of property or services); Or (b) to sell, exchange, or dispose of another way from the digital origin (or a financial interest in the digital origin)? “The question must be answered by all taxpayers.

Usually, you should answer “yes” if you are:

• I received digital assets as payment of property or services provided;
• I received the digital assets resulting from a reward or prize;
• Received new digital assets resulting from mining, activities and similar activities;
• I received the digital assets caused by a solid fork (branch from Blockchain in the cryptocurrency that divides the cryptocurrency one into two parts);
• Get rid of digital assets in exchange for property or services;
• Get rid of digital origin in exchange or trade for another digital origin;
• He sold digital assets. or
• Otherwise, getting rid of any other financial interest in digital assets.

To ask questions circulating and other details, please visit Digital assets Page on Irs.gov. Regardless of the treatment, you may have profit or loss, which is something regardless of the impact of the income tax on the person you pay. Take payment for services. Suppose you pay someone as an independent contractor with Crypto. To report the payment, if you are working at work and payments during the year up to $ 600, you will need this problem They have the form of the Tax Authority 1099.

Whatever the type or amount of encryption you use, the Tax Authority will say that you have paid them the current market value for encryption that day. When you pay an independent contractor and version of the 1099 model, you cannot enter a number of bitcoin into the form. The value in the US dollar should be placed from the time of payment. The contractor you pay the encryption may keep, or it may sell or transfer it on the same day, but this does not affect for you Taxes.

What about the paid wages for employees? Paid wages for employees who use CRYPTO subject to tax and you should block taxes. This means blocking other money, or pushing it in part in cash so that you can send the money to the Tax Authority. It can be complicated.