Treasury and IRS Announce Delay of Reporting of Digital Assets as Cash
The U.S. Treasury Department and the IRS recently issued Announcement 2024-4 informing businesses they do not have to report the receipt of digital assets the same way 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 that are engaged in a trade or business to report receiving cash of more than $10,000 by considering digital assets to be cash. The new announcement provides transitional guidance as the Treasury and IRS implement the new provisions. This particular provision requires the Treasury and 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.
The Treasury and IRS intend to issue proposed regulations to provide additional information and procedures for reporting the receipt of digital assets, giving the public an opportunity to comment both in writing and, if requested, at a public hearing.