Crypto Enthusiasts Fire Back At IRS’s Controversial $10K Reporting Rule

In a recent development in the U.S. crypto landscape, the Internal Revenue Service (IRS) is set to tighten its grip on the crypto enthusiasts, demanding detailed reporting on transactions exceeding $10,000. However, the crypto community is not taking this lightly. Notably, frustration is palpable as enthusiasts and experts alike express concerns about the practicality and implications of these stringent regulations.

Meanwhile, the IRS’s latest directive, born from the bipartisan infrastructure bill of 2021, targets crypto brokers, pushing them to disclose comprehensive transaction details. On the other hand, crypto market enthusiasts and industry insiders have not minced words in criticizing what they deem an impractical and potentially damaging move.

Crypto Community Slams IRS Over $10 Reporting Rule

Adriano Feria, a vocal crypto market enthusiast, highlighted the absurdity of the rules, stating that the IRS seems oblivious to the fundamental nature of crypto transactions. Meanwhile, he highlighted the exclusive push-only mechanism, affirming that the concept of “accepting” cryptocurrency payments is nonexistent.

In addition, Feria went as far as to suggest that sending the U.S. Commissioner of Internal Revenue over $10,000 in crypto would turn him into a “felon”. Such sentiments echo through the community, with frustration pouring out on social media platforms.

Jerry Brito, Executive Director of Coin Center, has previously raised legitimate concerns about the practicality of compliance, emphasizing the lack of clear guidelines from the IRS. He particularly noted the challenges faced by users and brokers, potentially leading to inadvertent non-compliance and severe legal repercussions.

Meanwhile, the ambiguity surrounding cryptocurrency miners, validators, and decentralized exchanges adds another layer of complexity to an already contentious situation.

Also Read: Binance Adds Nearly A Dozen Crypto Assets To ‘Monitoring Tag’ List

A Closer Look Into The Development

As the new year ushers in these stringent reporting obligations for U.S. citizens, the crypto community finds itself at odds with the IRS. Notably, the rules, effective from January 2024, mandate crypto brokers to divulge personal data on transactions surpassing $10,000.

However, as experts like Jerry Brito point out, the 15-day reporting deadline and the inherent complexities of on-chain transactions make compliance a challenging feat for many users. The community’s frustration and skepticism towards what they perceive as a very strict measure cast a shadow over the IRS’s attempt to bring the crypto industry under its regulatory umbrella.

Also Read: Ark Invest Sells $25M Coinbase Shares To Buy Elon Musk’s Tesla (TSLA), Cathie Wood Still Bearish

The post Crypto Enthusiasts Fire Back At IRS’s Controversial $10K Reporting Rule appeared first on CoinGape.