WASHINGTON –Treasury and the Internal Revenue Service have released final regulations on the IIJA’s reporting requirements for brokers of digital assets, which align these requirements with longstanding reporting requirements for traditional financial services, according to Treasury.
“Owners of digital assets have always owed tax on the sale or exchange of digital assets, and the IIJA did not change that or impose any new taxes on digital assets,” Treasury stated. “It simply created reporting requirements, similar to those that already applied to traditional financial services, to help taxpayers file accurate returns and pay taxes owed under current law.”
According to Treasury, the final regulations 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.
‘Bipartisan Directive’
“While owners of digital assets have always owed tax on the sale or exchange of digital assets, compliant taxpayers have often been forced to rely on expensive third-party services to calculate their gains or losses from the sale of digital assets,” Treasury said. “These final regulations will implement Congress’s bipartisan directive to ensure that owners of digital assets receive the information they need from brokers to file their taxes more accurately, more easily, and less expensively, and that the IRS has the information needed to address the tax evasion risks posed by digital assets.”
Regs Follow Public Hearing
Treasury said the regulations were developed after it and the IRS held a public hearing and carefully reviewed more than 44,000 comments in response to proposed regulations. While the rules primarily address reporting requirements for custodial brokers, Treasury and the IRS said they anticipate issuing additional rules later this year establishing reporting requirements for non-custodial brokers, consistent with statutory requirements, Treasury added.