Latest Post

Why Arm’s share price soared today Van der Merwe equalizes Scottish record with victory over USA
US Treasury Department and IRS issue final rules to implement bipartisan tax reporting requirements for the sale and exchange of digital assets

The U.S. Treasury Department and the Internal Revenue Service (IRS) issued final regulations on the IIJA’s reporting requirements for digital asset brokers on June 28, 2024, aligning these requirements with long-standing reporting requirements for traditional financial services. Digital asset owners have always had to pay taxes on the sale or exchange of digital assets, and the IIJA did not change that or create any new taxes on digital assets. It simply created reporting requirements similar to those already in place for traditional financial services to help taxpayers file accurate tax returns and pay the taxes owed under current law.

The final rules announced today will require brokers to report gross proceeds from the sale of digital assets for all sales in 2025, beginning in 2026. Beginning in 2027, brokers will also be required to report information on the tax basis for certain digital assets for sales in 2026.

“Thanks to the bipartisan Infrastructure Investment and Jobs Act, digital asset investors and the IRS have better access to the documentation they need to easily file and review tax returns,” said Assistant Secretary of State for Tax Policy Aviva Aron-Dine“By implementing statutory reporting requirements, these final regulations will help taxpayers more easily pay the taxes owed under current law while reducing tax evasion by wealthy investors.”

While digital asset owners have always had to pay taxes on the sale or exchange of digital assets, law-abiding taxpayers have often been forced to rely on expensive third-party services to calculate their gains or losses from the sale of digital assets. These final regulations implement the bipartisan directive from Congress to ensure that digital asset owners receive the information they need from brokers to file their taxes more accurately, easily, and less expensively, and that the IRS has the information it needs to combat the tax evasion risks associated with digital assets.

These regulations were developed after the Treasury Department and the IRS held a public hearing and carefully reviewed more than 44,000 comments on the proposed regulations. While today’s regulations primarily address reporting requirements for depository brokers, the Treasury Department and the IRS intend to issue additional regulations later this year that establish reporting requirements for non-depository brokers that are consistent with the statutory requirements.

Leave a Reply

Your email address will not be published. Required fields are marked *