Finalised Regulations to be Published on Sunday July 7
WASHINGTON, Friday, July 5, 2024- The U.S. Department of the Treasury and the Internal Revenue Service (IRS) on Wednesday June 26 finalized regulations implementing the bipartisan Infrastructure Investment and Jobs Act’s (IIJA) reporting requirements for brokers of digital assets, a media statement issued by Department of Treasury said.
The statement can be read here.
The Final Regulations document is unpublished. It is scheduled to be published on 07/09/2024, according to the Federal Register.
These new rules align reporting for digital assets with existing requirements for traditional financial services. Importantly, the IIJA does not create new taxes on digital assets; it simply establishes a reporting framework to assist taxpayers in filing accurate returns and ensure they pay taxes already owed under current law.
“The bipartisan Infrastructure Investment and Jobs Act improves access to documentation for both investors in digital assets and the IRS,” said Acting Assistant Secretary for Tax Policy Aviva Aron-Dine.
“These final regulations will make it easier for taxpayers to fulfill their tax obligations and reduce tax evasion by high-net-worth individuals.”
The regulations require brokers to report gross proceeds from digital asset sales starting in 2026, encompassing all sales made in 2025.
Additionally, beginning in 2027, brokers will be required to report tax basis information for certain digital assets sold in 2026.
Previously, compliant taxpayers often relied on expensive third-party services to calculate gains or losses on digital asset sales.
These regulations address Congress’s directive to ensure brokers provide owners of digital assets with the necessary information for accurate and affordable tax filing. This will also equip the IRS with the tools needed to address potential tax evasion associated with digital assets.
The finalized regulations follow a public hearing and careful review of over 44,000 comments received on proposed regulations.
While these rules focus on reporting for custodial brokers, the Treasury and IRS anticipate issuing additional rules for non-custodial brokers later this year, as mandated by law.
