data matters

Business Digital Currency Reporting for 2023

by First Class Compliance on January 17, 2024

In a recent announcement, the Treasury Department and Internal Revenue Service clarified that businesses are not required to report the receipt of digital assets in the same manner as cash, until specific regulations are issued. This adjustment stems from the Infrastructure Investment and Jobs Act, which expanded the definition of the term “cash” to include any digital asset for reporting purposes. The announcement, labeled 2024-4 PDF, offers transitional guidance while awaiting the formulation of regulations by the Treasury and IRS. 

It is important to note that the existing rules for reporting cash transactions exceeding $10,000, prior to the Infrastructure Investment and Jobs Act, remain unaffected. To facilitate the process, the Treasury and the IRS plan to release proposed regulations, seeking public input through written comments and potential public hearings.