US TREASURY AND IRS PROPOSE REGULATIONS ON BITCOIN & CRYPTO TRANSACTIONS BY BROKERS

US TREASURY AND IRS PROPOSE REGULATIONS ON BITCOIN & CRYPTO TRANSACTIONS BY BROKERS

The proposed rules require brokers of digital assets to adhere to stringent tax reporting standards.

Today, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) have jointly announced a set of proposed regulations focusing on the sale and exchange of digital assets by brokers. The is part of the broader strategy set forth by the Biden-Harris Administration's bipartisan Infrastructure Investment and Jobs Act (IIJA), in attempt "to close the tax gap, address the tax evasion risks posed by digital assets, and help ensure that everyone plays by the same set of rules."

"These proposed regulations would require brokers, including digital asset trading platforms, digital asset payment processors, and certain digital asset hosted wallets, to file information returns, and furnish payee statements, on dispositions of digital assets effected for customers in certain sale or exchange transactions," said ?the IRS.

These regulations obligate brokers of digital assets to report the specific sales and exchanges of their customers. The regulations also introduce the requirement for brokers to furnish a new Form 1099-DA, to help users determine if they owe taxes.

The implementation timeline specified in the regulations states that brokers would start reporting information on sales and exchanges of digital assets beginning in 2026, for transactions that occurred during the year 2025. The?Joint Committee on Taxation's?estimation is that these IIJA provisions could generate nearly $28 billion in revenue?over 10 years.

The Treasury Department and the IRS are actively soliciting feedback from affected taxpayers, industries, and other stakeholders on the proposed regulations. Written comments will be accepted until October 30, 2023, and the agencies have scheduled a public hearing on November 7, 2023, with a potential follow-up session on November 8, 2023, if the demand necessitates it.

By Nikolaus Hoffman

Leonard Anderson

Private Contractor at ExxonMobil corporation

1 年

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Christopher Parker

LinkedIn Top Organic Search Voice | SEO Expert and Copywriter | I Help Businesses Find and Connect With Customers Online

1 年

This is why the American people HAVE to stop being complacent and starting holding their government representatives accountable! The government is just trying to quell all of the supposed competitors to its CBDC, which would be an absolute disaster.

So every bitcoin wallet owner is in practice a broker now? Not happening. It’s clear they are getting upset we refuse to play thier games.

Simon Penwright

Emissary for Thailand - Bitcoin, Sustainability and Energy Innovation

1 年

They should go after the debasement of currency through inflation, that’s real financial crime.

The can try to regulate Bitcoin however they want, but it doesn't mean it won't hit $100k at some point. So nothing will stop me from accumulating Bitcoin in OWNR wallet while I have money to buy it.

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