The Internal Revenue Service (IRS) has temporarily halted new reporting requirements for cryptocurrency investors. The rules, initially set to take effect in 2024, would have imposed a default accounting method on centralized exchanges.
Critics, including Shehan Chandrasekera, head of tax at Cointracker, expressed concerns that the rules could harm investors during market upswings. The IRS has now extended the deadline until December 31, 2025, allowing investors to maintain their own records and giving brokers time to adapt their systems.
In a related move, the Blockchain Association and Texas Blockchain Council have filed a lawsuit challenging the constitutionality of new reporting rules set to be enforced in 2027. These rules require brokers to disclose taxpayer information and report gross proceeds from cryptocurrency sales.
Source: https://finance.yahoo.com/news/irs-delays-implementation-crypto-cost-173100985.html