I’m curious about the tax ramifications this year on my tax returns and I’m sure that the one hundred million new cryptocurrency users that Rally intends on recruiting will have similar concerns. Please forgive me if there has been a post here in this forum covering this subject. I searched through the headings and couldn’t find anything on the subject of taxes and the IRS.
It’s no secret that the US Government and global leaders have turned an eye onto the cryptocurrency market in recent years. Things are starting to heat up more and an infrastructure of reporting is currently being laid out globally. President Joe Biden’s 2022 budget proposal includes several new crypto reporting requirements.
Biden’s proposed new budget states “The proposal would require brokers, including entities such as U.S. crypto asset exchanges and hosted wallet providers, to report information relating to certain passive entities and their substantial foreign owners when reporting with respect to crypto assets held by those entities in an account with the broker.”
Is Rally currently reporting to the IRS?
Is Rally considered a broker or exchange? If so, will holders receive a 1099 from transactions made in 2021 at the start of 2022?
Will Rally provide a total of transactional events such as creator coins sent as rewards, cash exchanged for crypto, holdings, gains, and losses?
Are rewards from Rally considered a gift or income?
Are there plans for Rally creating software that can link to accounting applications such as Quickbooks?