On Dec. 30, 2024, US IRS published final rule re tax reporting, in the federal register.
Final rule becomes effective after publication, i.e., effective Feb. 28, 2025.
On Dec. 27, US IRS issued digital asset tax reporting requirements.
US IRS released final bipartisan tax reporting requirements for digital asset brokers.
Amends Income Tax Regulations (26 CFR 1) by adding final regulations under Internal Revenue Code section 6045 (26 USC 6045) on furnishing information returns.
Requires certain decentralized finance industry participants to file/furnish as brokers.
Final Regulations
Entitled Gross proceeds reporting by brokers that regularly provide services effectuating digital asset sales, rules provide information on reporting by brokers.
For brokers that regularly provide services for certain digital asset sales/exchanges.
Requires these brokers to file information returns and furnish payee statements reporting gross proceeds on dispositions of digital assets effected for customers.
Ensure DeFi brokers of digital assets are subject to same information reporting rules as brokers for securities and operators of custodial digital asset trading platforms.
Owner of a digital asset who engages in DeFi transactions will receive a Form 1099 from brokers and be reminded that those transactions are taxable, to reduce errors.
Aligning tax reporting requirements for digital assets with reporting for other assets will make filing easier and cheaper for compliant taxpayers and close tax gap.
Effectiveness
Regulations will become effective 60 days after publication in the federal register.
Dec. 2024 US IRS Final Rule
On Dec. 30, 2024, US IRS published final rule re tax reporting, in the federal register.
Final rule becomes effective after publication, i.e., effective Feb. 28, 2025.
