Topic: US IRS finalizes controversial tax rule requiring 'DeFi brokers' to collect user (Read 55 times)

https://www.theblock.co/post/332496/us-irs-finalizes-controversial-tax-rule-requiring-defi-brokers-to-collect-user-trading-information

The finalized rule would mean that “DeFi brokers” will follow the same rules as brokers that handle securities, the U.S. Treasury said on Friday.
The rulemaking has drawn criticism from crypto industry participants who say crypto is different from traditional assets.

"The U.S. Internal Revenue Service has finalized rules requiring certain brokers in decentralized finance to report on gross proceeds in digital asset sales.

Under the updated regulation, "DeFi brokers" will act like traditional brokers who handle securities and be required to collect information about their users' trades and send them a Form 1099, according to a statement from the U.S. Department of the Treasury on Friday. Brokers are required to send clients these 1099 forms, which are used to report payments not typically from an employer, such as income other than salaries.

“These regulations will help ensure that all taxpayers play by the same set of rules and have access to the information they need to file their taxes accurately,” said Aviva Aron-Dine, acting assistant secretary for tax policy, in a statement on Friday. “Aligning tax reporting requirements for digital assets with reporting for other assets will make filing easier and cheaper for compliant taxpayers while also helping close the tax gap.""

https://public-inspection.federalregister.gov/2024-30496.pdf