The IRS said it tried to avoid some burdens on users of stablecoins, especially when used to buy other tokens and in payments. Basically, a normal crypto investor and user who doesn’t earn more than $10,000 on stablecoins in a year is exempted from the reporting. Stablecoin sales – the most frequent in the crypto markets – will be tallied collectively in an “aggregated” report rather than as individual transactions, the agency said, though more sophisticated and high-volume stablecoin investors won’t qualify.
The agency said that these tokens “unambiguously fall within the statutory definition of digital assets as they are digital representations of the value of fiat currency that are recorded on cryptographically secured distributed ledgers,” so they couldn’t be exempted despite their aim to hew to a steady value. The IRS also said that totally ignoring those transactions “would eliminate a source of information about digital asset transactions that the IRS can use in order to ensure compliance with taxpayers’ reporting obligations.”
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