Sunday, July 21, 2024

Treasury and IRS Introduce New Regulations for Digital Asset Tax Reporting.

Final regulations for tax reporting on digital asset transactions have been announced by the IRS and the U.S. Department of Treasury as part of the Biden-Harris administration’s implementation of the Infrastructure Investment and Jobs Act.¬†Furthermore, the IRS and the Treasury stated that they plan to release additional regulations later this year that will impose reporting obligations on non-custodial brokers.

IRS and Treasury Announce Final Rules for Reporting Digital Assets Tax

“Final regulations implementing bipartisan tax reporting requirements for sales and exchanges of digital assets” were made public by the Internal Revenue Service (IRS) and the U.S. Department of the Treasury on Friday. These rules are a component of the Infrastructure Investment and Jobs Act (IIJA) implementation under the Biden-Harris administration.

The notification clarifies that no new taxes were imposed on digital assets under the IIJA; rather, owners of digital assets have always been responsible for paying taxes on their exchange or sale. Rather, it instituted reporting standards akin to those that are presently in existence for conventional financial services. Details from the IRS and the Treasury

Brokers will have to report gross proceeds from the sale of digital assets starting in 2026 for all sales made in 2025, according to the final regulations that were unveiled today. Starting in 2027, for sales made in 2026, brokers will also need to provide information on the tax basis for certain digital assets.

While today’s regulations largely address reporting obligations for custodial brokers, the statement also notes that these regulations were developed following a public hearing held by the Treasury and the IRS, during which they examined over 44,000 comments in response to draft regulations.

Later this year, Treasury and IRS plan to release more regulations that will mandate non-custodial brokers to report in accordance with legal obligations.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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