IRS Delays Cryptocurrency Reporting

IRS Delays Cryptocurrency Reporting

2023 Reporting Requirement for Brokers Delayed

Cryptocurrency

The Internal Revenue Service (IRS) has announced a delay in the reporting requirements for cryptocurrency transactions. Brokers will not be required to report or furnish additional information about the sale or disposition of digital assets under Code Sec. 6045, or to issue statements under Code Sec. 6045A, or file any returns with the IRS on transfers of digital assets under Code Sec. 6045A(d) until the IRS issues final regulations. These reporting rules were originally scheduled to take effect for returns or statements filed or furnished after December 31, 2023 (i.e., for transactions occurring after 2022).

In the meantime, brokers may continue to report gross proceeds and basis as required under existing law and regulations as of December 23, 2022. They may also furnish statements on transfers of covered securities as required under existing law and regulations until the IRS releases final regulations.