IRS expands focus on digital asset reporting

[Patrick Michael]

From Accounting Today (https://www.accountingtoday.com/opinion/tax-strategy-irs-expands-focus-on-digital-asset-reporting?utm_source=newsletter&utm_medium=email&utm_campaign=V3_ACT_Daily_2023%2B'-'%2B09252023&bt_ee=7jXmSOk9k89v2KKJINwG%2BptBxryLwmkr26gmdBbyuzYmd2vNQetW91Wy8I1QODYQ&bt_ts=1695643801434)

"It appears that there will be a new broker reporting form, Form 1099-DA, to address the reporting of digital assets. For every digital asset sale, the broker is required to report the following:
1. Name, address and TIN of the customer;
2. Name or type and number of units of digital assets sold;
3. Time and date of sale;
4. Gross proceeds of sale;
5. Transaction identification number;
6. Address from which digital assets were transferred;
7. The type of consideration received, such as cash, other digital assets, other property or services; and,
8. Any additional information required by forms or instructions.

Regs with respect to the computation of gain or loss and the basis of digital assets are proposed to apply to tax years after the finalization of the proposed regulations. The proposed rules with respect to broker reporting of gross proceeds apply if the sale is on or after Jan. 1, 2025. The proposed rules on broker reporting of adjusted basis apply if the sale or exchange is effected on or after Jan. 1, 2026. The information required to be reported may relate back to Jan. 1, 2023."

Thankfully, most of my clients are older and want nothing to do with digital assets.  Last year I only had one that did anything with cryptocurrency.

 

[Lee B]

I had two clients who dabbled in cryptocurrency back in 2021, but fortunately they both closed out their investments