IRS Proposes New Regulations on Broker Reporting Digital Asset Transactions with Hidden Additional Guidance beyond Broker Reporting Part 1 by: PHILIPP BEHRENDT
The year 2023 is witnessing transformative changes in the tax landscape for digital assets, with the Internal Revenue Service (IRS) poised to usher in a significant transformation. The official version of the proposed regulations for broker reporting under Code Secs. 6045 and 6045A is scheduled for August 29, 2023. However, ahead of this official release, the Treasury Department granted access to the 282 page unofficial proposed regulations (Proposed Regulation 2023-17565). These regulations outline the requirements for brokers mandated to report sales and exchanges of digital assets by their customers. This pivotal moment has been in the making since the enactment of the Infrastructure Investment and Jobs Act (P.L. 117-58) on November 15, 2021. Importantly, these regulations go beyond broker reporting; they provide comprehensive insights into how the IRS defines and views the world of digital assets, making them a valuable resource for tax professionals venturing into the cryptocurrency arena.