TRANSITIONAL GUIDANCE PROVIDED FOR BROKER REPORTING ON DIGITAL ASSETS:

The Treasury Department and Internal Revenue Service have announced that brokers are not required to report additional information with respect to dispositions of digital assets until final regulations are issued under sections 6045 and 6045A.

The Infrastructure Investment and Jobs Act (Infrastructure Act), enacted in 2021, amended provisions in sections 6045 and 6045A to clarify and expand the rules regarding the reporting of information on digital assets by brokers. Brokers are still required to comply with existing laws and regulations. Further details are in Announcement 2023-2, posted on IRS.gov.

This transitional guidance applies only to information returns filed or furnished by brokers. In contrast, taxpayers are still required to report any income they receive from transactions involving digital assets. They are also required to answer the digital asset question on page 1 of either Form 1040 or Form 1040-SR.

For more information, including a set of frequently-asked questions, visit the Digital Assets page on IRS.gov.