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New IRS Regulations on Crypto Reporting: What You Need to Know

As your trusted financial advisors, we're always keeping an eye on the latest tax developments that might affect you. The IRS has just released new regulations on reporting cryptocurrency and digital asset transactions, and we want to make sure you're informed.

What's Changing?

Starting in 2025, many cryptocurrency exchanges and other digital asset brokers will be required to report sales and exchanges to the IRS. This means if you're using platforms like Coinbase or Binance, your transactions will likely be reported directly to the tax authorities.

Who's Affected?

These new rules primarily target what the IRS calls "custodial brokers" - companies that hold digital assets for their customers. This includes:

Cryptocurrency trading platforms
Certain digital wallet providers
Crypto ATMs
Some digital asset payment processors

What About DeFi?

For now, the regulations don't cover decentralized finance (DeFi) platforms or non-custodial wallets. However, the IRS has indicated that future rules may address these areas.

Real Estate Transactions

If you're in real estate, take note: starting in 2026, professionals will need to report the fair market value of digital assets used in property transactions.

Why This Matters

These changes are part of the IRS's efforts to improve tax compliance in the rapidly growing digital asset space. With more accurate reporting, it should become easier for crypto users to file correct tax returns.

What You Should Do

Keep detailed records of all your crypto transactions.
If you're using multiple platforms, be aware that you may receive tax forms from each of them.
Consider consulting with a tax professional (like us!) to ensure you're complying with all reporting requirements.

The Good News

The IRS understands that this is a big change. They're offering some penalty relief for brokers who make good-faith efforts to comply in the early stages.

Looking Ahead

As your CPAs, we're staying on top of these developments and how they might affect your tax situation. The world of cryptocurrency taxation is complex and evolving, but we're here to help you navigate it.

Have questions about how these new regulations might impact your taxes? Don't hesitate to reach out. We're here to ensure you stay compliant and informed in this changing landscape.

Remember, staying ahead of tax changes is key to financial success. Let's work together to make sure your crypto investments don't lead to unexpected tax surprises.

Contact Information

For personalized guidance:

Schedule a consultation: https://koalendar.com/u/easoncpa-appointment
Contact our office: (770) 474-0464

Disclaimer: This blog provides general information and should not be construed as specific tax advice. Individual consultation with a qualified tax professional is recommended for your specific situation.