Digital Asset Reporting Safe Harbor Available Until End of Year

Given the rough-and-tumble, anti-institutional “wild west” modern tradition of digital assets, many owners may find the IRS’s imminent requirements for basis and transaction reporting difficult to comply with, particularly inasfar as they have not maintained clear records. Over the years, they may have acquired assets person to person, in personal “unhosted” wallets over the blockchain, or moved assets between their digital asset wallets and between crypto exchanges, without keeping track of cost purchase tax basis coin by coin or token by token.

But a safe harbor is available through the end of this year. In Rev. Proc. 2024-28 (July 29, ...