TechFlow news, according to News.Bitcoin, the Internal Revenue Service (IRS) has issued a temporary relief measure expected to benefit cryptocurrency holders on centralized finance (CEFI) trading platforms in 2025. The regulation, effective January 1, 2025, requires the use of the first-in, first-out (FIFO) accounting method for crypto assets unless taxpayers elect preferred methods such as highest-in, first-out (HIFO) or specific identification (Spec ID).
The IRS's temporary relief allows taxpayers to continue using their own records or tax software to identify specific assets being sold. This relief period applies only to CEFI transactions occurring between January 1, 2025, and December 31, 2025. After this date, taxpayers will be required to formally elect an accounting method with their broker.
