The IRS announced on Wednesday that it will postpone new tax reporting requirements for cryptocurrency until 2026. This delay allows brokers involved in cryptocurrency trading to comply with new regulations regarding the cost basis for transactions on centralized platforms.

New Regulations on Cryptocurrency Taxation

In July, the IRS and the U.S. Treasury Department released new rules concerning how to identify which cryptocurrencies are sold when investors hold multiple cryptocurrencies at a brokerage, such as a centralized exchange. According to these rules, if taxpayers do not specify an accounting method, the First In, First Out (FIFO) method will be applied, meaning that the earliest acquired cryptocurrencies will be considered sold first.

This regulation was expected to take effect on January 1, 2025. However, the IRS has opted for a one-year extension to give brokers the necessary time to implement required changes. Consequently, this regulation will now become effective on January 1, 2026.