IRS Is About To Relax Tax Rules For Crypto Giants In the US

Group 1 - The US Treasury Department and IRS are easing a proposed tax rule that imposed a 15% minimum tax on unrealized gains from digital asset holdings for crypto companies [1][2] - This change is in response to significant opposition from companies like MicroStrategy and Coinbase, which argued that taxing unrealized gains is unfair compared to traditional assets [1][2] - The Corporate Alternative Minimum Tax (CAMT) was established by the 2022 Inflation Reduction Act and applies to large corporations with over $1 billion in average annual income [4] Group 2 - The IRS introduced new rules requiring companies to record digital asset holdings at fair value, impacting how fluctuations in crypto prices are reflected in financial statements [5] - Without the new tax guidance, corporations holding appreciated crypto would have to include unrealized gains in their Adjusted Financial Statement Income (AFSI) [6] - The ongoing discussions in the Senate Finance Committee highlight the need for clearer tax policies regarding digital assets to enhance business attractiveness and tax compliance [3]