IRS Enlists the Expertise of Two Private-Sector Cryptocurrency Specialists in Preparation for Tax Season

The Internal Revenue Service (IRS) of the United States has enlisted the help of two new experts in the field of cryptocurrency taxation from the private sector. With the official tax filing season starting on January 29, the IRS has been urging citizens to accurately report all income generated from cryptocurrencies and digital assets, including nonfungible tokens (NFTs). This includes reporting rewards received in crypto form or through staking, among other sources of income. The IRS believes that the expertise of Sulolit Mukherjee and Seth Wilks, who have been hired as executive advisers, will help the department develop a digital assets infrastructure that benefits everyone. The IRS plans to use funding from the Inflation Reduction Act (IRA) to ensure compliance in emerging areas such as digital assets. It’s important to note that taxpayers are not obligated to report cryptocurrencies held in wallets, transferred between wallets owned by the same person, or purchased using fiat currency. The IRS had initially required US businesses to report all cryptocurrency transactions exceeding $10,000, but later backtracked on this law and plans to implement it after releasing a regulatory framework. The US House Financial Services Committee has also acknowledged issues with the poorly constructed reporting requirements for digital assets.