This afternoon, in Announcement 2023-2, the IRS announced that brokers are not required to report additional information with respect to dispositions of digital assets until the IRS and Treasury issue final regulations under sections 6045 and 6045A. The Infrastructure Investment and Jobs Act of 2021 (the “Act”) amended sections 6045 and 6045A to clarify and expand the rules regarding the reporting of information on digital assets by brokers. These provisions of the Act were intended to increase tax compliance through additional information reporting regarding transactions involving digital assets.
Announcement 2023-2 provides that until new final regulations are issued under section 6045 and section 80603 of the Act, brokers may continue to report gross proceeds and basis as required under existing law as of December 23, 2022. Further, brokers may continue to furnish transfer statements on covered securities to other brokers under section 6045A as required under existing law as of December 23, 2022, until final regulations are issued under section 6045A and section 80603 of the Act. In other words, brokers are not required to modify their procedures regarding the disposition or transfer of digital assets under sections 6045 and 6045A until Treasury and the IRS issue final regulations addressing the manner in which the statutory changes under section 80603 of the Act are to be implemented.
In Information Release IR-2022-227, the IRS cautions taxpayers that they remain obligated to report any income received from transactions involving digital assets and are required to answer the digital asset question on page 1 of either Form 1040 or Form 1040-SR.