The IRS has announced temporary relief measures that will allow cryptocurrency holders on centralized exchanges to bypass strict tax regulations in 2025. The relief addresses concerns about the finalized Section 6045 custodial broker regulations, which would have required FIFO accounting for digital assets unless another method was chosen. Many centralized exchanges were not ready to support alternative accounting methods, which could have resulted in higher tax liabilities for crypto holders. The temporary relief allows taxpayers to continue using their own records or tax software to identify specific units being sold. However, after December 31, 2025, taxpayers will need to select an accounting method with their broker. It is important for taxpayers to sync their tax software with their broker settings to ensure accurate reporting. No immediate action is required to qualify for the relief, as it will be automatically applied.



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