Announcement 2024-4: Transitional guidance on reporting of information on receipt of digital assets
Digital assets are not required to be included when determining whether cash received meets the reporting threshold
Reporting of information on receipt of digital assets
The IRS today released Announcement 2024-4 [PDF 53 KB] providing transitional guidance under section 6050I with respect to reporting transactions involving receipt of digital assets.
The announcement clarifies that at this time, digital assets are not required to be included when determining whether cash received in a single transaction (or two or more related transactions) meets the reporting threshold. The U.S. Department of the Treasury and IRS, however, intend to prescribe regulations to provide additional information and procedures for reporting the receipt of digital assets under section 6050I.
Until Treasury and the IRS publish regulations under section 6050I to implement section 80603(b)(3) of the “Infrastructure Investment and Jobs Act” (Pub. L. No 117-58):
- Persons engaged in a trade or business who, in the course of that trade or business, receive digital assets or digital assets and other cash in one transaction (or two or more related transactions) will not be required to include those digital assets when determining whether cash received has a value in excess of the $10,000 reporting threshold for purposes of determining if reporting is required under section 6050I with respect to those transactions.
- Persons engaged in a trade or business who, in the course of that trade or business, receive cash (other than digital assets) in excess of $10,000 in one transaction (or two or more related transactions) must continue to file an information return under section 6050I with respect to that cash received.
Read a related IRS release—IR-2024-12 (January 16, 2024)
Background
Section 80603(b)(3) of the “Infrastructure Investment and Jobs Act” amended section 6050I of the Code to add digital assets to the list of assets included in the definition of cash in section 6050I(d).
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