In response to the widespread interest and concern generated by its proposed crypto reporting regulations, the Internal Revenue Service (IRS) has decided to extend the comment period by an additional two weeks.

This move grants stakeholders more time to express their opinions, with the new deadline of November 13, 2023. Previously, stakeholders were required to submit comments on the proposed regulations by October 30, 2023.

IRS Grants Extra Time for Public Input

The Treasury and IRS have announced an extension of two weeks for the comment period on its proposed crypto reporting regulations. This update, announced in an Oct. 25 Federal Register document, allows stakeholders more time to provide feedback.

The final date for feedback has been extended to mid-November in response to the rule’s significant public interest since its August announcement.

The proposed regulations focus on defining “brokers” in the crypto industry, including trading platforms, payment processors, digital asset-hosted wallet providers, and individuals who redeem digital assets they create or issue.

Notably, individual miners and validators in the crypto industry are relieved as they are exempted from being classified as “brokers.” However, if adopted, the proposed rules would impose additional compliance requirements on crypto companies, causing concerns among industry participants.

Lawrence Zlatkin, the Vice President of Tax at Coinbase, expressed his concerns about the proposed regulations, describing them as “incomprehensible and unduly burdensome” due to the new reporting requirements they would impose.

He also pointed out the potential data overload the IRS could face, including transactions with “zero or negligible taxable income” under the proposed rules.

The Proposed Crypto Reporting Regulations

On August 25, 2023, the Department of the Treasury and the Internal Revenue Service introduced proposed regulations to improve clarity and compliance for digital asset taxat