New IRS Regulations Require Cryptocurrency Platforms to Report User Transactions

In a move to ensure proper tax reporting for cryptocurrency transactions, the US Treasury Department has finalized new regulations this week. Cryptocurrency Platforms Reporting Requirement The new regulations require cryptocurrency platforms to report users' transactions to the Internal Revenue Service (IRS). This measure aims to curb tax evasion in the crypto space by ensuring that individuals are accurately reporting their earnings. IRS Commissioner Danny Werfel stated that the regulations were developed after reviewing public comments to address concerns and enhance tax compliance in the digital asset realm. User Reporting and IRS Compliance Under the new rules, cryptocurrency platforms will also be obligated to provide users with 1099s at the end of the year. This will facilitate users in accurately reporting profits or losses on their taxes. Real Estate Transaction Reporting Furthermore, real estate professionals are now mandated to report the fair market value of digital assets involved in real estate transactions with closing dates on or after January 1, 2026. Impact and Implementation These regulations will come into effect for transactions completed in 2025, emphasizing the importance of accurate tax reporting in the digital asset space. For the current year, traders will need to ensure compliance independently. Stay informed with the latest updates and news on tax regulations by subscribing to our newsletter. Sign up for What's New Now to receive top stories directly to your inbox every morning.