Proposed regulations on broker reporting of digital asset transactions

The Infrastructure Investment and Jobs Act of 2021 requires brokers to report digital asset transactions. Proposed regulations define the term “brokers” (the term covers digital asset platforms) and what they have to report for the amount realized and basis. The proposed regulations also cover the rules for backup withholding for digital asset transactions. Proceeds from these transactions will be reported on new Form 1099-DA. #IdeaoftheDay