A provision to the U.S. tax code that took effect on Jan. 1 requires anyone who receives $10,000 or more in cryptocurrency in the course of their trade or business to make a report to the IRS about that transaction.
Nathan Goldman, associate professors of accounting in the Poole College of Management, says that the new rule will not affect the majority of crypto traders simply because most transactions will not meet the $10,000 threshold.
However, investors who trade large amounts of crypto will likely be impacted by the seemingly vague provision.
This post was originally published in Poole Thought Leadership.
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