IRS delays crypto broker reporting

 

The IRS recently issued guidance (Announcement 2023-2) delaying the expanded broker reporting requirements under Sections 6045 and 6045A passed as a part of The Infrastructure Investment and Jobs Act.

 

The Infrastructure Investment and Jobs Act expanded broker reporting requirements to include digital assets effective returns filed after Dec. 31, 2023 (for 2023 transactions). Many taxpayers have argued that the legislative text is overly broad and could capture taxpayers in the digital asset space who aren’t brokers. Under the Announcement, a taxpayer may furnish statements and perform reporting under the law and regulations as of Dec. 23, 2022, until final regulations are issued.

 

Treasury is expected to release regulations on the broker reporting requirements in the near future, as the U.S. Office of Management and Budget recently noted it received proposed regulations on the subject on Jan, 10, 2023.

 

 

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