In the deregulated symphony that is the crypto world, a dissonant note struck when the IRS decided to call a new tune.

The crypto community, not one to shy away from expressing disdain, has orchestrated a cacophony of frustration over the new IRS reporting rules.

IRS Strikes a Discordant Chord

The IRS, looking for things for their new recruits to do, and seemingly out of time with the crypto ethos, imposed new reporting obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term on U.S. citizens starting January 1. The rules require crypto brokers to relay personal data to the IRS for transactions surpassing $10,000. It’s a regulatory melody that sounds more like a dirge for privacy, demanding the sender's name, address, and social security number.

Challenges in Meeting the Crescendo

Crypto thinktank Coin Center's Jerry Brito highlighted the new law and pointed out the 15-day timeframe to get your details in. We’re assuming he wasn’t a fan.

New crypto tax reporting obligations took effect on Jan 1.

If you receive $10k or more in crypto you now have an obligation to report the transaction (including names, addresses, SS numbers, etc.) to the IRS within 15 days under threat of a felony charge. pic.twitter.com/wyRsfJEpMo

— Jerry Brito (@jerrybrito) January 2, 2024

A Rebellious Refrain

Social media crypto evangelist and pseudo-celebrity Wendy O railed against the paperwork, the time it will no doubt take and the general increase in restrictions.

The new IRS crypto reporting law is dumb

More paperwork
More time
More restrictions

On something that can be done end of year

They are really trying to push folks overseas so in reality they are just hurting themselves

Still comply because we pay our crypto taxes but the… https://t.co/aIQ4Dahukk

— Wendy O (@CryptoWendyO) January 2, 2024

Silent Sheet Music: Frustration Amplified

Ryan Adams, founder of Mythos Capital, and author of Bankless, added his notes of frustration, highlighting the fact that the filing requirements were worryingly vague.

If you're a U.S. citizen and get $10k or more in crypto you have to report it to the IRS within 15 days or they can charge you with a felony.

Starting now.

They want name, address, ssn of the sender.

Oh - and they're not telling you how to file the report.

Yay 🇺🇸 ! https://t.co/XypaIGBjch pic.twitter.com/6o3jGEObv9

— RYAN SΞAN ADAMS - rsa.eth (@RyanSAdams) January 2, 2024

Crypto Crooner: A Song of Discontent

In the midst of this crypto turbulence, singer Jonathan Mann composed a song, a lyrical rebellion against what he dubbed a draconian law. Describing how an NFT song sale for over $10,000 lacks buyer details beyond an ENS name, Mann's melody highlights the absurdity of meeting the IRS's demand for personal information.

In response to the new draconian IRS law that makes receiving $10k or more in crypto a felony w/o KYC, I have made:

"THIS SONG IS A FELONY"

collect for .001: https://t.co/SgCLiX3WOh pic.twitter.com/IbuspEbWcF

— 15 years of song a day (@songadaymann) January 3, 2024

Oufff. Suffice it to say that 2024 hasn’t started well for many. Forbes have an excellent breakdown of the situation, but essentially, Businesses and professional traders that receive over $10,000 worth of cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term will need to report their transactions to the Internal Revenue Service. The key is to remember the wording, “businesses and professional traders”, simple investors should be fine.

In any case, call your accountant. Because, along with their new recruits, the IRS is also using AI to discover tax dodgers.