Two developments for crypto users and investors: 1) Taxpayers must now check a box on their returns indicating whether they received digital assets as payment for property or services or whether they sold, exchanged or transferred digital assets that were held as capital assets. If “yes” is checked, taxpayers must report income related to the transactions. 2) A 2021 law extended reporting rules, similar to those required by stockbrokers, to crypto exchanges, custodians and platforms and to digital assets. The new rules were scheduled to be effective for 2023 transactions. But the IRS has postponed the effective date until it issues final regs that provide instructions.
