IRSProposed Rule

Hearings, Meetings, Proceedings, etc.: Source of Income from Cloud Transactions

Finance & BankingTechnology

Summary

The IRS is proposing new rules to clarify how to report and tax income earned through cloud-based transactions and digital services. This matters because more people are earning money through online platforms, and the IRS wants to establish clear guidelines for what counts as taxable income in the digital economy.

Key Points

  • 1The IRS is creating clearer definitions of what income from cloud transactions means and how people should report it on their taxes
  • 2This affects anyone earning money through online platforms, digital services, or cloud-based businesses
  • 3The proposed rule aims to help both taxpayers and the IRS understand which digital earnings are taxable and how to properly document them
  • 4The IRS is accepting public comments on this proposal until June 18, 2025, before making a final decision
  • 5Once finalized, this rule will establish consistent tax treatment for cloud-based income across the country

Key Dates

Published

June 3, 2025

Comment Deadline

June 18, 2025

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This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.

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