New Cryptocurrency Tax Law Raises Constitutional Concerns, Lacks Clarity on Reporting Rules
• New crypto tax law requiring reporting of crypto transactions over $10K to the IRS took effect January 1, 2022.
• According to Coin Center, the law is unconstitutional, unclear, and may be impossible to fully comply with.
• The law categorizes crypto as cash, so transactions must be reported on Form 8300, but guidance is lacking on specifics.
• It's unclear who exactly users should report crypto transactions to on the form.
• Coin Center says FinCEN has no authority to collect crypto transaction reports, yet form requires sending to both IRS and FinCEN.