Overview
On October 24, 2022, Politico quoted Lisa Zarlenga in a piece titled "A virtual hold?" The article discusses the new tax reporting requirements to be implemented for those involved in virtual currency assets under the bipartisan infrastructure law signed by President Biden last November. Starting 2024, cryptocurrency brokers will be required to report transactions to the IRS. However, to meet that timeline, brokers would have to begin collecting information on January 1, 2023. Given the immediacy of the deadline, it is expected for there to be a delay as the Treasury Department and the IRS have yet to release definitive regulations and instructions for reporting.
Even before passing the infrastructure law, Treasury and the IRS had been working on virtual currency regulation. Zarlenga expressed how she was "surprised" it has taken this long to issue the guidance, particularly since reporting is "probably the number one thing that would increase compliance."
