The U.S. Department of the Treasury and the IRS have released final regulations for tax reporting on digital asset sales, as part of the Biden-Harris administration’s implementation of the Infrastructure Investment and Jobs Act. Additionally, the Treasury and the IRS revealed that they anticipate issuing further rules later this year to establish reporting requirements for non-custodial brokers.
Treasury and IRS Announce Digital Asset Tax Reporting Regulations
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Treasury and IRS Finalize Digital Asset Tax Reporting Rules
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) released “final regulations implementing bipartisan tax reporting requirements for sales and exchanges of digital assets” on Friday. These regulations are part of the Biden-Harris administration’s implementation of the Infrastructure Investment and Jobs Act (IIJA).
The announcement explains that owners of digital assets have always owed taxes on their sale or exchange, and the IIJA did not impose any new taxes on digital assets. Instead, it established reporting requirements similar to those already in place for traditional financial services. The Treasury and the IRS detailed:
The final regulations announced today will require brokers to report gross proceeds on the sale of digital assets beginning in 2026 for all sales in 2025. Brokers will be required to also report information on the tax basis for certain digital assets beginning in 2027 for sales in 2026.
These regulations were developed after the Treasury and the IRS held a public hearing and reviewed more than 44,000 comments in response to proposed regulations, the announcement notes, adding that while today’s rules primarily address reporting requirements for custodial brokers:
Treasury and IRS anticipate issuing additional rules later this year establishing reporting requirements for non-custodial brokers, consistent with statutory requirements.
What do you think about this digital asset tax reporting regulation announced by the Treasury and the IRS? Let us know in the comments section below.
