United States of America: Opened consultation on Treasury Department and IRS Proposed Regulations on Reporting Sales and Exchanges of Digital Assets by Brokers

On 25 August 2023, the US Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) published proposed regulations on reporting digital asset sales by brokers and opened a public consultation until 13 November 2023. The regulations require brokers to report specific details of digital asset sales and exchanges, aligning them with reporting standards for securities and financial instruments. Furthermore, the proposed regulations aim to simplify tax reporting for taxpayers and promote consistency across asset types, introducing a new Form 1099-DA to help taxpayers calculate their tax obligations accurately. These rules would begin applying to sales and exchanges of digital assets in 2025, with the first reporting year being 2026.