Proposed Regulations Would Impose New Reporting Requirements On Transactions Involving Cryptocurrency And Other Digital Assets

In response to a provision in the 2021 Infrastructure Investment and Jobs Act, the Department of the Treasury and the Internal Revenue Service (IRS) have issued proposed regulations that would impose new tax reporting requirements for digital asset brokers starting with the 2026 tax filing season, with respect to sales and exchanges of digital assets taking place on or after Jan. 1, 2025.

The proposed regulations would add anyone "that, in the ordinary course of a trade or business during the calendar year, stands ready to effect sales [of digital assets] to be made by others" to the definition of a broker required to provide tax forms with certain information–including names, addresses, taxpayer identification numbers, the type of digital asset sold, gross proceeds, and, under certain circumstances, basis information–to the IRS and customers with respect to transactions in which digital assets are exchanged for cash, stored-value cards, different digital assets,