Announcement 2023-2: Transitional guidance for broker reporting on digital assets
Transitional guidance under sections 6045 and 6045A
Transitional guidance for broker reporting on digital assets
The IRS today issued Announcement 2023-2 [PDF 61 KB] to provide transitional guidance under sections 6045 and 6045A with respect to the reporting of information on digital assets.
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. Read TaxNewsFlash
Announcement 2023-2 states that the Treasury Department and the IRS intend to implement those amendments by issuing new regulations specifically addressing the application of sections 6045 and 6045A to digital assets and providing forms and instructions for broker reporting. Until such new regulations are finalized,
- Brokers may report gross proceeds and basis as required by the existing law and regulations under section 6045 as of December 23, 2022.
- Brokers may furnish statements on transfers of covered securities as required by the existing law and regulations under section 6045A as of December 23, 2022.
- 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).
However, as explained in the accompanying IRS release—IR-2022-227 (December 23, 2022)—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 [PDF 152 KB] or Form 1040-SR [PDF 160 KB].
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