The US Internal Revenue Service yesterday announced that it will delay the implementation of new tax reporting requirements for cryptocurrencies until the beginning of 2026.
The decision to postpone was made in order to give brokers time to adjust to the new regulations on determining the cost basis for cryptocurrencies on centralized platforms.
In July, the IRS and Treasury Department finalized and published new rules on how to determine which cryptocurrency units are sold when an investor holds multiple units in a brokerage account, such as on a centralized exchange.
Under these rules, if a taxpayer has not specified a preferred accounting method, the First-In, First-Out (FIFO) method will be used, meaning that the earliest acquired crypto assets will be considered as sold first.
The initial deadline for this mandate was January 1, 2025, but it has now been pushed back by one year. CoinTracker’s Head of Tax, Shehan Chandrasekera, wrote on X that there was a practical issue with this approach.
