Introduction
CryptoTaxirs, an independent organization that provides tax guidance and preparation services for cryptocurrency users, has extended the comments period for a new crypto tax rule to mid-November. The new rule proposes that cryptocurrency transactions over $10,000 be reported to the Internal Revenue Service (IRS).
The original comments period was set to end on October 12, 2021. However, CryptoTaxirs has extended the period by one month to allow for more feedback from the crypto community.
Proposed Rule
The proposed rule requires businesses and individuals to report cryptocurrency transactions over $10,000 to the IRS. The rule is similar to the existing reporting requirements for cash transactions over $10,000.
CryptoTaxirs is urging the crypto community to provide feedback on the proposed rule. The organization believes that the rule could have a significant impact on the crypto industry and wants to ensure that all stakeholders have a say in the matter.
Implications
If the new rule is implemented, it could have a significant impact on the crypto industry. Many crypto users are concerned that the rule could lead to increased regulation and government oversight of the industry.
However, some experts believe that the rule could actually benefit the industry by providing more clarity and legitimacy to cryptocurrency transactions. By requiring businesses and individuals to report large transactions, the rule could help to prevent fraud and money laundering in the crypto industry.
Conclusion
The proposed crypto tax rule requiring the reporting of cryptocurrency transactions over $10,000 to the IRS has been extended for comments until mid-November. The rule has the potential to significantly impact the crypto industry, and CryptoTaxirs is urging the community to provide feedback on the proposal. While some experts believe the rule could benefit the industry, others are concerned about increased regulation and government oversight.
