On 16 January 2024, the US Treasury Department and IRS declared that businesses in the US are not required to report transactions involving digital assets the same way as they must report the receipt of cash until the Treasury and IRS issue regulations.
The Infrastructure Investment and Jobs Act revised the rules that require taxpayers who are engaged in a trade or business to report receiving cash of more than $10,000 by considering digital assets to be cash.
Announcement 2024-4 provides transitional guidance as Treasury and the IRS implement the new provisions. This provision requires the Treasury and the IRS to issue regulations before it goes into effect.
The announcement does not affect the rules in effect before the Infrastructure Investment and Jobs Act for cash received in the course of a trade or business, which must be reported on Form 8300, Report of Cash Payments over $10,000 Received in a Trade or Business, within 15 days of receiving the cash.
Treasury and the IRS intend to issue proposed regulations to provide additional information and procedures for reporting the receipt of digital assets, allowing the public to comment both in writing and, if requested, at a public hearing.
