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.
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.
More tax hot topics
No Results Found. Please search again using different keywords and/or filters.