As of 1ᵉʳ January 2024, new tax rules apply to cryptocurrency transactions in the US. According to CoinCenter, any receipt of cryptocurrencies worth more than $10,000 must now be declared to the IRS. This declaration must include the sender's personal information and details of the transaction.
CoinCenter is a consumer rights group focused on legal and policy issues related to cryptocurrencies, working to promote fair regulation.
Failure to submit this declaration within 15 days of a transaction being executed can result in charges. The rule is effective immediately and requires little action to implement. The IRS states that this obligation applies to transactions of more than $10,000 in cash, but did not clearly mention digital assets until 2021. The Infrastructure Investment and Jobs Act, which came into force in 2021, broadened the definition of cash to include digital assets.
CoinCenter today stated its opposition to the new law, describing it as "unconstitutional [and] also virtually impossible to comply with". For example, blockchain miners and validators who receive new rewards have no identifiable sender to include in a declaration to the authorities. Similarly, those carrying out transactions via decentralised exchanges have no identifiable sender to declare. CoinCenter also challenged the lack of clarity on determining the value of a particular cryptocurrency.
CoinCenter said the new regulations require those affected to submit Form 8300 to the IRS. CoinCenter argues that this form is also sent to FinCEN, an entity that they say has no right to request information about cryptocurrency transactions. In June 2022, CoinCenter filed a lawsuit against the US Treasury. It is challenging the constitutionality of these rules, a dispute that is still being processed.
