TL;DR
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Last week we mentioned that a new US tax code would require the IRS to know the name and SSN of anyone that sends $10k (or more) of “business-related crypto” to your wallet.
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Problem is, the vast majority of crypto transactions are anonymous – making this stipulation near impossible to meet (at least currently)…
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Good news: It won’t be enforced right now and when the time does come, the law will probably only apply to transactions made ‘in the course of a person’s employment.’
Full Story
Remember last week when we had that fun chat about US tax codes?
Basically, as of Jan 01 ‘24, the IRS wants to now know the:
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Name
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Social security number
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Favorite color
Of anyone that sends $10k (or more) of “business-related crypto” to your wallet.
…and if you don’t report it within 15 days – BAM!
(Potential) felony charges.
Problem is, the vast majority of crypto transactions are anonymous – making this stipulation near impossible to meet (at least currently)…so the big question became:
Are we all about to go to jail?
Well, we aren’t! (Hoooray!)…for now (Oh?)
The IRS clarified that the measure is not currently being enforced, and won’t be for a while.
Good news: when the time does come, the law will probably only apply to transactions made ‘in the course of a person’s employment.’
Even better news: that means it shouldn’t apply to flipping NFTs or day trading meme coins.
That said, there’s still some questions that need answering, like:
If your primary income is derived from staking Ethereum – how do you go about reporting it?
Cause last we heard, Ethereum doesn’t have a social security number.
(Or a favorite color).
