IRS Faces Pushback Over Broad Crypto Tax Rules from Industry Seeking Greater Clarity
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The IRS is gathering final feedback on its proposed digital asset taxation regime, which has received over 120,000 comments from the crypto industry.
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Key industry concerns include the broad definition of "broker" required to report transactions, implications for user privacy, and the inclusion of stablecoins and DeFi platforms.
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The proposal aims to establish clear tax reporting rules for crypto, removing uncertainty for investors, but risks being too broad.
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While establishing a taxation framework would legitimize crypto in US finance, the volume of critiques may delay finalization of the rules.
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Other issues raised include the relationship to securities law and whether the rules reinforce the "securities" designation for crypto.