[Delio] Crypto Tax in US May be Postponed

Tax efforts by the US government are hitting a snag, with the Biden administration likely to delay when crypto brokers and exchanges are required to start collecting detailed information about their clients’ trades, Bloomberg reported on June 30.

It is likely that the Treasury Department and Internal Revenue Service (IRS) will push back the January deadline for firms to begin tracking capital gains and losses.

Under a law passed by Congress last November, crypto companies are supposed to begin recording their clients’ transaction data in 2023. Industry executives have opposed the legislation, claiming it is too broad. However, Treasury and the IRS declined to comment on the possible delay.

Once rules are in place, exchanges and brokerages will be required to provide the transaction data including customer names and addresses, gross proceeds from sales, and any capital gains or losses.

Along with the regulations, Treasury and the IRS are developing a new 1099-DA form specifically for crypto firms that will be distinct from the 1099-B one used by stock and bond brokers. In the upcoming months, the government intends to release a draft of it.

Source: Bloomberg

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