IR-2024-12: Treasury and IRS Temporarily Exempt Digital Asset Transactions from Cash Reporting Requirements

The Treasury Department and the IRS have issued an announcement, under IR-2024-12 dated January 16, 2024, stating that businesses are not required to report the receipt of digital assets in the same way they report cash transactions over $10,000. This directive follows the Infrastructure Investment and Jobs Act, which expanded the definition of cash in section 6050I of the Code to include digital assets. However, the implementation of this provision awaits the issuance of specific regulations by the Treasury and IRS.

The current rules for reporting cash receipts over $10,000 on Form 8300 remain unaffected by this announcement. The upcoming regulations will detail the procedures for reporting digital asset transactions and will provide opportunities for public comment and participation in a public hearing.

In the meantime, transactions involving digital assets are exempt from the reporting requirements applicable to cash transactions of similar amounts. This transitional guidance will remain until the necessary regulations are published.

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