U.S. Department of the Treasury, IRS Released Proposed Regulations on Sales and Exchanges of Bitcoin for Brokers

U.S. Department of the Treasury and the Internal Revenue Service (IRS) have jointly announced a set of proposed regulations focusing on the sale and exchange of digital assets by brokers.”These proposed regulations would require brokers, including digital asset trading platforms, digital asset payment processors, and certain digital asset hosted wallets, to file information returns, and furnish payee statements, on dispositions of digital assets effected for customers in certain sale or exchange transactions,” said the IRS.”These regulations obligate brokers of digital assets to report the specific sales and exchanges of their customers. The regulations also introduce the requirement for brokers to furnish a new Form 1099-DA, to help users determine if they owe taxes.””The JCT estimated that the IIJA provisions would raise almost $28 billion over 10 years.”The Treasury Department and the IRS welcome comments and feedback on the proposed regulations from affected taxpayers, industries, and other interested parties. Written comments will be accepted until October 30, 2023.

Bitcoin Magazine Article / Archive
Treasury Press Release / Archive
Proposal PDF / Archive

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