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Treasury says crypto miners are immune from IRS reporting

The IRS has confirmed that bitcoin miners and wallet operators are exempt from IRS reporting rules

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Treasury says crypto miners are immune from IRS reporting. Source: pexels.com

The US Treasury Department proposes to exempt crypto miners and other “ancillary parties” from tax reporting requirements.

The Treasury Department said in a letter to senators on Friday that it expects to exempt crypto miners, stakers, and other market players from laws requiring crypto brokers to share customer transaction data with the IRS.

On Twitter, Senator Rob Portman expressed gratitude to the Treasury Department for confirming that crypto miners, stakers, and those who offer wallet hardware and software are exempt from taxation.

“Ancillary parties who cannot access information helpful to the IRS are not intended to be caught by the reporting requirements for brokers,” according to Treasury Assistant Secretary for Legislative Affairs Jonathan Davidson.

This includes “whether other companies in the digital asset market, such as centralized exchanges and decentralized exchanges and peer-to-peer exchanges, should be classified as brokers,” the letter states.

President Joe Biden signed the $1 trillion infrastructure bill in mid-November 2021, mandating crypto traders to declare all transactions worth $10,000 or more to the IRS.

In December, many senators, including Pat Toomey, Ron Wyden, and Cynthia Lummis, pushed the Treasury to clarify the definition of broker in the infrastructure law. A similar plan was endorsed by House Democrats in November.

Davidson further noted that crypto validators are unlikely to know whether a transaction is part of a sale and that firms providing crypto wallet services are not acting as brokers.

We’ve reported HMRC seized NFT for the first time in a fraud case involving £1.4M in proceeds.

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