Brokers Given More Time to Adapt
The IRS has delayed implementing new tax reporting rules for cryptocurrencies until January 2026. The delay provides centralized finance (CeFi) platforms time to develop systems that allow users to choose specific accounting methods for tracking crypto transactions.Avoiding Automatic FIFO Calculations
Under the rules, if taxpayers fail to select an accounting method, the IRS would apply the First-In, First-Out (FIFO) approach by default, which often results in higher taxable gains. Tax experts warned that enforcing FIFO during a bull market could lead to unintended tax burdens for investors.Pushback from Crypto Advocacy Groups
The Blockchain Association and other groups have filed lawsuits challenging IRS requirements for DeFi brokers to store and report user trading data starting in 2027. The delay reflects the IRS’s acknowledgment of the complexities surrounding crypto taxation while industry stakeholders push for fairer regulations.
Read the full article on
theblock.
