The US Department of the Treasury and the Internal Revenue Service (IRS) have jointly issued proposed regulations aimed at enhancing transparency and compliance in the digital asset sector. These regulations are set to mandate brokers to report sales and exchanges of digital assets conducted by their customers.
The proposed regulations encompass various digital asset concerns, notably defining brokers and mandating the reporting of proceeds to the IRS via the newly introduced Form 1099-DA. “These proposed regulations are designed to help end confusion involving digital assets and provide clear information and reporting certainty for taxpayers, tax professionals and others,” commented IRS Commissioner Danny Werfel. He emphasized the importance of ensuring digital assets aren’t utilized to conceal taxable income, especially by high-income individuals.
Starting from Jan. 1, 2025, brokers, which include digital asset trading platforms,…
