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IRS Finalizes 115-Page Cryptocurrency Broker Reporting Rules, Effective January 1, 2027, Published December 30, 2024

Dec 27, 2024, 02:14 PM

The U.S. Treasury Department and the Internal Revenue Service (IRS) have finalized new reporting requirements for cryptocurrency brokers, which will be published in the Federal Register on December 30, 2024. This decision comes after a period of industry pushback regarding the tracking of transactions. The new rules, which include amendments to the Income Tax Regulations, will apply to digital asset sales and exchanges occurring on or after January 1, 2027, marking a two-year delay compared to the rules for centralized exchanges. Critics have described the regulations as burdensome, with concerns that they may classify various decentralized finance (DeFi) protocols as brokers, complicating compliance for many in the industry. The IRS has also issued a notice regarding transitional relief related to the reporting of information and backup withholding on digital assets.