Summary
- The IRS has finalized regulations requiring DeFi brokers to report virtual asset income.
- These regulations require DeFi brokers to collect information and submit Form 1099, similar to securities brokers.
- The regulations will be implemented in 2027, aiming to simplify tax reporting and reduce the tax gap.
On the 27th (local time), according to the cryptocurrency-focused media The Block, the Internal Revenue Service (IRS) finalized regulations requiring DeFi brokers to report total income from digital asset sales. The updated regulations apply the same rules to DeFi brokers as to securities brokers, requiring them to collect information on user transactions and submit Form 1099. Acting Assistant Secretary for Tax Policy Aviva Aron-Dine stated in a press release, "Applying the same tax reporting requirements to virtual assets as to other assets will not only simplify taxpayer reporting but also help reduce the tax gap." These regulations are set to take effect on January 1, 2027.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
