Tax impacts related to the Infrastructure Investment and Jobs Act:
Cryptoasset Reporting – The bill expanded the definition of “broker” so that platforms that have “transfers of digital assets on behalf of another person” are now subject to additional reporting requirements. This will make cryptocurrency exchanges like Coinbase subject to additional reporting. The bill did not specify what the exchanges will send to their customers but it is likely to be Form 1099-B “Proceeds from Broker” which traditional brokers use.
For more information see the Journal of Accountancy Article on these updates.
While these are not significant changes over all, we recommend that you keep a close eye on our blog as we expect more information on the Build Back Better Act to be available soon. Follow us on LinkedIn to stay up-to-date!