Final Regs Recently Issued on Digital Assets Reporting
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.
Additional information, including some transition relief and delayed reporting rules can be found at https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-requiring-broker-reporting-of-sales-and-exchanges-of-digital-assets-that-are-subject-to-tax-under-current-law-additional-guidance-to-provide-penalty-relief-address
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