IRS Drops A Bombshell – 278

So the IRS says controversial $10,000 Reporting rule doesn't currently apply To cryptocurrency in a nice turn of Events from the cryptocurrency mining Perspective the two US Agencies Announced on January 16th that Controversial transaction reporting Rules do not apply to digital assets I.E Cryptocurrency the Internal Revenue Service the IRS and Department of the Treasury said quote businesses do not Have to report the receipt of digital Assets the same way as they must report The receipt of cash until Treasury and IRS issues Regulations in an attached announcement The IRS and treasury also said quote This announcement provides transitional Guidance and clarifies that at this time Digital assets are not required to be Included when determining whether cash Received in a single transaction or two Or more related transactions meet the Reporting Threshold the two agencies said that They intend to issue proposed Regulations applying to the receipt of Digital assets at a later date this will Allow the public to submit comments in Writing and at a public hearing if Requested obviously we want to get on That as part of the cryptocurrency Mining Community to voice our opinions If they even matter these days I don't

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Really know the rule requires businesses To report on form 8300 that they have Received more than $10,000 in cash Within 15 days of receipt at present the Text of the rule only mentions cash and Does not explicitly mentioned digital Assets however a particular law the Infrastructure investment and jobs Act Was previously updated to consider Digital assets as cash the IRS and dang There's an ad no thanks the IRS and Treasury acknowledged that change but Said that the provision requires issuing New guidance before the change takes Effect the rule previously attracted Complaints particularly from the Industry Group coin Center coin Center Asserted that the rule rules began to Apply to crypto transactions in early January it also expressed concerns that The requirements could apply to entities That are not capable of compliance such As blockchain Miners validators and Decentralized exchange users obviously The reason for this is because in most Cases if you're mining you will be Having that set and then getting the Payouts and you can't really determine You know depending on like how much Those assets are worth when you mine Them compared to when you sell them and When you report him all that sort of Stuff obviously can be a little bit more Difficult this probably also does apply

To like defi liquidity as well as Validators that are doing proof of stake I kind of understand uh where that comes From of course those reporting rules Would be more difficult however there is Something to be said for selling every Day for the amount of power you used When you're Mining and that is something That I do come into practice with at Least on the Bitcoin mining side of Things because it makes the bookkeeping A lot easier if we move into like the Speculative Mining and GPU mining Especially hobbyist mining not so much Also because it would be at the 10K Realm probably nothing anybody here has To actually worry about from that Perspective coin Center also challenged The rules in court however because that Lawsuit has not progressed since mid 2023 and was not acknowledged by either Agency today the case seemingly did not Prompt the agency's latest announcement The postponed rules only concern extra Reporting requirements that apply to Large transactions General income tax Rules still apply requiring crypto Investors and transactors to report Gains and losses on digital assets of Course you can do the 8089 in that Particular case uh the I believe Bitcoin. tax will generate that for you You can import all of your trading History blah blah blah generate the 8089

And then just give that to your CPA That's what I do uh on the income side Of things if you're using a larger pool There's usually export transactions to Make it a bit easier or utilize a Specific wallet which is probably the Best uh case scenario if you're trying To manage reporting and so on for all of The income and you can track at the what The price was at the time of that and so On so you can pay the income part of it Just some tidbits of tips I've learned Across you know over the past few years Of mining now you guys mined during the Bare Market you made it through well at Least maybe a half of you I know a lot Of you over here didn't Actually do it but the ones that did I Have a new shirt for you guys and it Says I mined with the Bears for the bear Market okay so if you mind with the Bears and you want to rep that you did Mine during the bar Market go ahead and Head on over to shop.of and the Listing will be down below I'll put it In live chat right now I have a Sweatshirt there's a sticker if you'd Rather have a sticker t-shirt premium Shirt all that Co cool stuff um really Like the new shirt I ordered a few for Myself and I just had that design Finished this week eventually it'll be Under on the YouTube channel but that Takes a little bit of time so just give

It some time uh proceeds of course go to Supporting me in the channel so there You go and I thought uh we put some work Into it and I thought you guys might Enjoy It thanks for watching this clip from The crypto mining show you can check out The full episode here and don't forget To subscribe down here as well you can Also check out my crypto mining ecourse At where you can get a free Month of supporter status with a Purchase at sonof tech. also Don't forget to check out my merch Underneath the video or at shop.on I'll see you next Tuesday

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