We’re NOT All Going to Jail! (For Now)

TL;DR

• Last week we mentioned that a new US tax code would require the IRS to know the name and SSN of anyone that sends $10k (or more) of “business-related crypto” to your wallet.

• Problem is, the vast majority of crypto transactions are anonymous – making this stipulation near impossible to meet (at least currently)…

• Good news: It won’t be enforced right now and when the time does come, the law will probably only apply to transactions made ‘in the course of a person’s employment.’

Full Story

Remember last week when we had that fun chat about US tax codes?

Basically, as of Jan 01 ‘24, the IRS wants to now know the:

1. Name

2. Social security number

3. Favorite color

Of anyone that sends $10k (or more) of “business-related crypto” to your wallet.

…and if you don’t report it within 15 days – BAM!

(Potential) felony charges.

Problem is, the vast majority of crypto transactions are anonymous – making this stipulation near impossible to meet (at least currently)…so the big question became:

Are we all about to go to jail?

Well, we aren’t! (Hoooray!)…for now (Oh?)

The IRS clarified that the measure is not currently being enforced, and won’t be for a while.

Good news: when the time does come, the law will probably only apply to transactions made ‘in the course of a person’s employment.’

Even better news: that means it shouldn’t apply to flipping NFTs or day trading meme coins.

That said, there’s still some questions that need answering, like:

If your primary income is derived from staking Ethereum – how do you go about reporting it?

Cause last we heard, Ethereum doesn’t have a social security number.

(Or a favorite color).