Final Regs Recently Issued on Digital Assets Reporting

Published: Jun 28, 2024

The IRS and Treasury issued final regulations requiring brokers to report digital asset sales and exchanges starting Jan. 1, 2026. Guidance includes rules for basis, gains/losses, and backup withholding. Learn more: irs.gov/newsroom

Aaron Klein, CPA-East Texas 

 

On June 28, 2024, the U.S. Department of Treasury and Internal Revenue Service issued final regulations related to the reporting of sales and exchanges of digital assets. The final regulations generally mirror the proposed regulations and require broker reporting of gains and losses for transactions occurring after Jan. 1, 2026. In addition, the regulations provide further guidance for taxpayers to determine their basis, gain, and loss from digital asset transactions and backup withholding rules. 

 

Topics:

You May be Interested in

  • The Verdict is In. The Texas Franchise Tax is GILTI, Raising New Questions and Potential Issues
    Beginning with the 2026 report year, the Texas Comptroller will align the franchise tax with the current Internal Revenue Code, likely requiring GILTI to be included in total revenue. This change raises sourcing, statutory and potential constitutional questions for businesses with foreign operations, creating new uncertainty and possible tax impacts.
  • NIL Income for Student-Athletes: Tax Implications and Emerging Pitfalls for Practitioners
    The expansion of NIL opportunities has created complex tax issues for student-athletes, whose income is generally treated as self-employment business income. Common pitfalls include unreported non-cash compensation, multi-state tax exposure, weak recordkeeping and limited financial literacy, all of which heighten audit risk. As IRS scrutiny increases and new reporting rules emerge, CPAs must understand these challenges to effectively advise this growing group of taxpayers.
  • Data Processing Services – SaaS and Software Licenses
    Cloud-based SaaS is treated as a taxable data processing service in Texas, with 80% of the sales price subject to sales tax, compared with 100% taxation for traditional software licenses. Taxpayers using SaaS in multiple states can further reduce Texas tax by allocating the software’s usage between Texas and non‑Texas locations. This often results in significant savings and may allow refunds for past overpayments.
More News

Support the Next Generation

Donate to TXCPA scholarships and help aspiring accountants achieve their goals.

Scholarships