Deloitte’s Rob Massey: What Bitcoin Investors Need to Know About The Changing IRS Tax Guidance

Patrick Green wrote the post "Deloitte’s Rob Massey: What Bitcoin Investors Need to Know About The Changing IRS Tax Guidance," which initially appeared on Bitcoin Magazine.

Rob Massey, who has provided advice on crypto taxes at Deloitte since 2012, discusses crypto tax compliance. He addresses realization events during wallet movements and explains why 1099 forms from brokers are insufficient.

Massey details that using Bitcoin as currency creates "new muscle" for required reporting. He clarifies which wallet movements qualify as realization events and which do not.

He also notes that no "de minimis exemption has passed," meaning all transactions, whether small or large, must be reported.

Regarding current business leaders' inquiries, Massey touches upon ETFs, Bitcoin lending, and leverage. Furthermore, he states that "Paying the Plumber Is Taxable and the IRS Sees Everything On Chain."

He suggests that Bitcoiners should advocate for specific guidance from Treasury concerning lending, basis, and character. The discussion also covers international aspects, noting a lack of tax treaties and Subpart F implications for Bitcoin across borders.

A section addresses the difficulty of proving cost basis after years of moving coins. The material also touches upon how multinationals compare stablecoins and Bitcoin across payment corridors.