Crypto-Tuesday, September 12, 2023 – The U.S. Department of the Treasury and the IRS are making new rules for people who deal with digital money, like Bitcoin and other cryptocurrencies. Starting January 1, 2025, if you’re a broker—which means you help people buy and sell this digital money—you’ll have to fill out a new tax form. It’s called Form 1099-DA. The idea is to make sure everyone’s paying the taxes they should. They’re also going to ask for more details on profits or losses for sales starting in 2026.
And get this, even folks in the real estate game must follow these rules. If you’re a title company or a real estate agent and you accept digital money in a property deal, you’ll have to report that too, starting the same year.
The new IRS Commissioner, Danny Werfel (yes that’s his name), says these new rules are to clear up any confusion. They especially want to keep an eye on rich folks to make sure they’re not hiding any money they should be paying taxes on. According to the IRS, when there’s a third-party like a broker reporting things, people are more likely to pay their taxes correctly.
So, if you have something to say about these rules, write it down, and submit your thoughts by October 30, 2023. They’re even holding a public meeting on November 7, and maybe on the 8th if they get a lot of people wanting to speak. At least the IRS will make it look like they are listening.
Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649
