“For background, in August 2021, when Congress was weighing President Biden’s Infrastructure Bill, later named the “Infrastructure Investment & Jobs Act,” language was included that broadened the IRS’ tax reporting rules to include a wide swath of entities in the digital assets ecosystem. At that time, we wrote that this language was ‘bad and needs to change,’ arguing that the language was highly problematic because it could require IRS reporting from several types of previously un-covered entities, including several that functionally will be unable to comply. Under the proposed rules, digital asset entities that qualify as brokers would need to 1) perform KYC on their users and 2) furnish individual users and the IRS with transaction information (including gross proceeds) for digital asset sales/conversions on Form 1099-DA.”
And That’s Our Two Satoshis!
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