The new crypto tax requires U.S. citizens to be vigilant

2024-01-05 04:37:42

This article is brief:

• As of December 31, 2023, U.S. citizens will face the consequences of Crypto Assets tax liability.

• Reporting transactions over $10,000 within 15 days is essential for U.S. citizens to avoid felony charges.

• New Crypto Assets tax rules have an impact on companies, with the FASB requiring fair value measurement to go into effect in 2025 and provide for earlier adoption.

U.S. citizens who hold Crypto Assets face a new obligation to raise awareness to avoid potentially serious consequences.

“The amendments made to this section shall apply to the returns that need to be filed after 31 December 2023 and the statements that need to be provided,” the document states. ”

U.S. citizens must meet Crypto Assets tax obligations

Jerry Brito, executive director of the Coin Center, recently reported that U.S. citizens who hold more than $10,000 worth of Crypto Assets must be aware of and meet their tax reporting obligations.

"If you receive $10,000 or more in Crypto Assets, you are now obligated to report the transaction (including name, Address, SS number, etc.) to the IRS within 15 days and threatened with felony charges. ”

Public Law 117-58 – November 15, 2021. Source: Jerry Brito

Ongoing Crypto Assets Tax Measures for U.S. Citizens in Latest Tax Developments

Previously, we reported that new Crypto Assets tax rules are coming into effect, which will affect companies holding Crypto Assets.

The Financial Accounting Standards Board (FASB) has introduced new rules that require companies to measure their crypto assets at fair value.

This measurement technique captures the latest value of Digital Money such as Bitcoin and Ethereum and aims to more accurately reflect their value. The rule, which is in effect from 2025, allows companies to opt in for early adoption.

Meanwhile, in April 2023, there were reports that almost all Crypto Assets investors avoided taxes in 2022.

According to research firm Divly, almost no one reported their Crypto Assets trading or investment activities to tax authorities last year.

"We estimate that in 2022, only 0.53% of Crypto Assets investors worldwide declared their Crypto Assets activity to local tax authorities. ”

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