IRS Postpones Digital Asset Reporting Rules for Brokers

The IRS Office of the Associate Chief Counsel (Procedure & Administration) postponed the application of new "digital assets broker reporting rules" under IRS tax code Section 6045 ("Returns of Brokers") and Section 6045A ("Information required in connection with transfers of covered securities to broker") until the issuance of new final regulations interpreting those sections.

In the "transitional guidance" the IRS said it will "implement section 80603 of the Infrastructure Act by publishing regulations specifically addressing the application of sections 6045 and 6045A to digital assets and providing forms and instructions for broker reporting." Further, the IRS said that a "notice of proposed rulemaking will be published that sets forth proposed regulatory text, explains the proposed rules, solicits public comments, and announces a public hearing."

Until this rulemaking occurs, the IRS said, a broker "may report gross proceeds and basis as required under existing law and regulations" and "may furnish statements on transfers of covered securities as required under existing law and regulations as of December 23, 2022." Further, "brokers will not be required to report or furnish additional information with respect to dispositions of digital assets under section 6045, or issue additional statements under section 6045A, or file any returns with the IRS on transfers of digital assets under section 6045A(d) until those new final regulations under sections 6045 and 6045A are issued."