IRS delays reporting of $10,000 digital asset transactions

The IRS on Jan. 16 announced (Announcement 2024-4) that taxpayers will not be required to file information returns to report receiving more than $10,000 in digital assets on Form 8330 until the IRS publishes regulations under Section 6050I.

Section 6050I generally requires any person engaged in a trade or business to report receiving cash of more than $10,000 in a single transaction (or two or more related transactions) on Form 8300 within 15 days of receiving the cash. The person receiving the cash must also furnish a statement to the payor. Section 80603(b)(3) of the Infrastructure Investment and Jobs Act amended Section 6050I(d) to expand the definition of the term “cash” to include any digital asset as defined in Section 6045(g)(3)(D).

The IRS said in the announcement that it intends to issue regulations implementing the change to Section 6050I, and that until those regulations are published, taxpayers will not be required to include digital assets for purposes of the determining whether cash received in transactions exceeds the $10,000 threshold.

Grant Thornton Insight

This reporting requirement is separate from the expansion of broker reporting requirements under Section 6045 to include digital assets. The IRS recently proposed regulations implementing those rules, but also delayed their effective date (see our prior story). The relief also does not affect the income tax considerations of any digital asset transaction or the question on the Form 1040 regarding digital assets. Digital assets raise unique technical questions, and taxpayers with digital asset transactions should ensure they are correctly reporting and reflecting the treatment on returns.

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Jeff Borghino

Principal, Washington National Tax Office
Principal, Tax Services

Grant Thornton Advisors LLC

Jeff Borghino is a principal in the corporate tax group of Grant Thornton’s Washington National Tax Office in Washington, D.C. He focuses primarily on the taxation of corporate and financial transactions, including taxable and tax-free acquisitions, general corporate tax matters, recapitalizations and debt workouts, and financial instruments. Prior to joining the Washington National Tax Office, Borghino worked in Grant Thornton’s San Francisco office as part of the federal tax group.

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