Part 3/15:
Under the new rules, recipients of digital assets must verify the sender’s identity, including Social Security Numbers (SSNs), and report this information promptly to the IRS. Violations, whether accidental or intentional, can lead to felony charges with penalties up to five years in prison and fines exceeding $25,000 per violation. Importantly, this criminal aspect sets it apart from typical tax reporting requirements, which are usually misdemeanors or civil infractions.