This article briefly:
•Starting December 31, 2023, U.S. citizens will face the consequences of cryptocurrency tax obligations.
•Reporting transactions over $10,000 within 15 days is essential for U.S. citizens to avoid felony charges.
•New cryptocurrency tax rules impact companies, with FASB requiring fair value measurements to take effect in 2025, with earlier adoption available.
U.S. citizens who hold cryptocurrencies face a new obligation that requires increased awareness to avoid potentially serious consequences.
“The amendments made by this section shall apply to returns required to be filed and statements required to be furnished after December 31, 2023,” the document states.
US Citizens Must Fulfill Cryptocurrency Tax Obligations
Coin Center Executive Director Jerry Brito recently reported that U.S. citizens who hold more than $10,000 worth of cryptocurrencies must understand and meet their tax reporting obligations.
“If you receive $10,000 or more in cryptocurrency, you are now obligated to report that transaction to the IRS within 15 days (including name, address, SS number, etc.) and are threatened with felony charges.”
Ongoing Crypto Tax Measures for US Citizens in Latest Tax Developments
Previously, we reported that new cryptocurrency tax rules were about to come into effect, which would affect companies that hold cryptocurrencies.
The Financial Accounting Standards Board (FASB) has introduced new rules requiring companies to measure their crypto assets at fair value.
The measurement technique captures the latest value of digital currencies such as Bitcoin and Ethereum and is intended to more accurately reflect their worth. The rules will take effect from 2025, with companies being given the option to adopt them earlier.
Meanwhile, in April 2023, it was reported that almost all cryptocurrency investors avoided taxes in 2022.
According to research firm Divly, almost no one reported their cryptocurrency trading or investment activities to tax authorities last year.
“We estimate that by 2022, only 0.53% of cryptocurrency investors worldwide will have declared their cryptocurrency activities to their local tax authorities.”#加密税 #美国