On August 25, 2023, Treasury published a proposed rule (the “Proposed Rule”) providing guidelines for brokers of digital assets to report tax information to their customers and the IRS. Issued pursuant to the Infrastructure Investment and Jobs Act (the “IIJA”), the Proposed Rule aims to improve crypto tax compliance by clarifying reporting requirements and eliminating information gaps.
This report analyzes the Treasury’s Proposed Rule regarding tax reporting requirements for digital asset “brokers,” examines key concerns, and discusses relevant Congressional legislation.
