Key Takeaways
- The IRS recruits crypto specialists Mukherjee and Wilks to boost its digital asset regulation capabilities.
- This move aims to refine digital asset services, reporting, and enforcement.
- The IRS updates crypto reporting rules, clarifying exemptions and pausing the $10,000 transaction report requirement until further regulations.
As the US tax season gets underway, the Internal Revenue Service (IRS) has strengthened its focus on crypto by bringing in two specialists from the private sector, Sulolit Mukherjee and Seth Wilks, to serve as executive advisers.
The initiative is part of a broader effort to ensure compliance in the rapidly evolving area of digital assets, supported by funding from the Inflation Reduction Act (IRA).
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Avoid Major Crypto Investment Risks? (Beginner-Friendly)
Mukherjee and Wilks will build "service, reporting, compliance and enforcement programs focused on digital assets," enhancing the IRS's capabilities in the sector.
Commissioner Danny Werfel expressed his positive view on this addition to the IRS:
Pulling in expertise from the private sector to work with the IRS team is critical to successfully building the agency’s efforts involving digital assets and helping us do it in a way that works well for everyone.
With the tax filing season kicking off on January 29, the IRS has proactively reminded taxpayers to declare all forms of digital asset income. This includes earnings from staking and rewards, among other transactions.
The agency has clarified that cryptocurrencies held in wallets or transferred between wallets of the same owner, as well as those bought with fiat money, do not require reporting.
In addition, the IRS has announced a shift in policy. Until a comprehensive regulatory framework is introduced, transactions over $10,000 will not need to be reported, as was mandated on January 1.
As the IRS navigates challenges, this recruitment marks a significant step towards integrating crypto taxation into the mainstream financial system.
In other news related to crypto regulation, Senator Warren calls for equal regulations in the crypto and AI sectors to ensure fairness across emerging and established technologies.
