Tuesday August 2, 2022 – The infrastructure bill Congress passed in November 2021 contained new “broker rules.” The broker rules require that crypto firms collect customer transaction data and is set to take effect in 2023 with full reporting to occur in 2024 (for calendar year 2023).
These rules are designed to overcome the difficuties taxpayers have found when reporting cryptocurrency trades on their annual tax returns.
Recently, the IRS announced it is crafting a new information return dubbed 1099-DA (Digital Asset). This form is speicically designed to report the information needed to calculate gains (or losses) such as the asset type, date purchased, date sold, gross proceeds and cost basis.
Attorney Steven A. Leahy reviews the IRS proposal and how it will effect taxpayers on Today’s Tax Talk.