U.S. Treasury and IRS Propose New Rules That Broaden Client Information Crypto Businesses Are Required To File
The U.S. Treasury Department and Internal Revenue Service just published a proposal that would set new guidelines on what crypto brokers must report for digital asset sales and exchanges.
Under the new rules, the term “crypto brokers” will include crypto trading platforms, digital asset payment processors, certain digital asset-hosted wallet providers and persons who regularly offer to redeem crypto assets that they created or issued.
The proposal seeks to require that brokers report new information on their users’ sales and exchange of crypto assets to tax authorities.
“Based on existing authority as well as changes to the applicable tax law made by the Infrastructure Investment and Jobs Act, 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.”
The Treasury and the IRS are now soliciting comments on the proposed rules until October 30th. A public hearing is also set for November 7th.
Meanwhile, US accounting standard-setters have approved new financial reporting guidelines for reporting the value of crypto assets in company holdings.
Bloomberg Intelligence crypto market analyst Jamie Coutts says the development, which allows companies to report the most up-to-date value of a crypto asset, is an important adoption catalyst.
“The winds of change – Bitcoin (and other crypto) gets fair accounting treatment.
Corporates will now be able to assess BTC on its merits as a store of value, debasement hedge w/o a punitive accounting rule.”
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