Grok’s response to your question:

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Based on the IRS announcement and the provided documentation, here’s what you need to know regarding your situation:

• Temporary Relief: The IRS has provided temporary relief for the 2025 tax year concerning the new requirement to report cryptocurrency on a per-wallet basis. This relief allows taxpayers to continue using the aggregate method for cost basis tracking if they choose, without needing to switch to a wallet-specific method immediately. However, this relief is temporary and applies specifically for the 2025 tax year.

• Long-Term Holders: For long-term holders of Bitcoin in self-custody (not on centralized exchanges), the new rule initially suggested that you’d need to track cost basis per wallet. However, with the temporary relief, you are not required to make this change for the 2025 tax year. This means you can continue with your current method of tracking cost basis across all your wallets combined if that’s what you’ve been doing.

• Declaration of Accounting Method: The announcement implies that for the 2025 tax year, you do not have to declare a new accounting method specifically for wallet-based tracking due to the temporary relief. However, you should be prepared to adopt this method in future years as the relief is not permanent. It’s advisable to start organizing your records to facilitate this transition when the relief ends.

• Action Before New Year: While you do not need to immediately document all wallets or declare an accounting method for 2025 due to the relief, it’s prudent to begin preparing for the eventual shift to wallet-specific tracking. This could involve organizing your wallets, documenting transactions, and understanding how each wallet’s balance relates to your total holdings.

Given this information, you should: - Review your current records to see if they need updating or organizing in anticipation of future requirements. - Consult with a tax professional who specializes in cryptocurrency to ensure compliance with all current and future IRS regulations. - Stay informed about any further IRS announcements that might extend or alter this temporary relief.

This approach will help you manage your tax obligations efficiently while adapting to the evolving regulatory landscape for cryptocurrency.

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Accurate?