Recent IRS mandates compelling crypto users to report transactions above $10,000 have sparked frustration and dissent within the crypto community, with expressions of disapproval surfacing on social media and even through song.
The updated tax reporting obligations for U.S. citizens, effective from January 1, mandate crypto brokers to furnish personal information to the IRS for transactions surpassing $10,000. Details required encompass the sender’s name, address, and social security number.
According to Coin Center’s executive director, Jerry Brito, compliance with these rules poses a significant challenge due to the intricate nature of on-chain transactions. Many users may find it arduous to adhere to the regulations, potentially facing felony charges.
Voices of discontent echoed across the community, with Adriano Feria denouncing the law as “stupid” and its creators as “idiotic.” Feria, in a Twitter post, asserted that the IRS needs to acknowledge the inherent nature of crypto transactions, highlighting their irreversible and “push only” nature. He emphasized the impossibility of accepting a crypto payment, citing an example where sending $10k in crypto to the U.S. Commissioner of Internal Revenue could lead to a felony charge.
Ryan Adams, founder of Mythos Capital and Bankless, echoed similar sentiments, criticizing the lack of clear instructions for complying with the reporting requirements. Conversely, some individuals interpreted the law as a measure to dissuade crypto sales.
Meanwhile, crypto singer Jonathan Mann expressed disdain for the legislation, characterizing it as “draconian.” Mann composed a song, outlining an instance where one of his NFT songs sold for 5.3 Ether (ETH) exceeding $10,000. He lamented the impracticality of providing sender details like name, address, and social security number, portraying the law as criminalizing transactions involving crypto.
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