Navigating US Treasury Department Guidance for Digital Assets

Learn more about who is impacted by the recently released guidance and how to start planning now for the upcoming reporting deadlines.

US Treasury Regulations Are Here.

What Brokers Need to Know Today

What’s a digital asset? 

  • Digital assets include any digital representation of value that is recorded on a cryptographically secure distributed ledger, even if not every transaction is individually recorded.

  • Stablecoins and NFTs are considered in scope.

Who is a digital asset broker? 

  • Digital asset brokers include any person who provides services facilitating the sale or exchange of digital assets, including centralized exchanges, digital asset payment processors, and certain decentralized protocols where there is sufficient control or influence over the protocol to make changes to it.

What types of new reporting will be required for digital asset brokers?

  • Broker Reporting: Digital asset brokers will be required to issue annual broker information returns, like a 1099-B (Form 1099-DA isn't specifically referenced in the proposed regulations, the IRS has commented publicly about creating the new form).

  • Form W-9/W-8: A critical component of broker payments and reporting is the collection of certified TINs, which is achieved by collecting a Form W-9. Compliance is required for new accounts starting 1/1/2025 and pre-existing/non-US accounts by 12/31/2025.

  • Cost Basis: Track and report cost basis information for disposed of assets down to the unit level, including selection of accounting method (e.g. FIFO) and/or determination of cost basis lot used at time of sale. Compliance date is 1/1/2023 for knowing cost basis of continuously hosted assets.

  • Voluntary reporting: The IRS is supporting voluntary broker reporting for tax years prior to 2025 & 2026 by providing penalty waivers for early filers.

Regs Features Highlights Part 1

Detailed Analysis

US Treasury Regulations

See our recent blog post for expert insights from TaxBit and a comprehensive breakdown and analysis of the proposed regulations coming from the IRS and the US Treasury.

Read More

Experience modern tax compliance

Eliminate manual efforts and data inconsistencies with automated ingestion, calculation, and remediation of user or transaction data.

Single Platform

Manage your tax compliance in real-time

Take control of your process and exposure with an internally-accessible platform that allows users to understand and remedy concerns before they become issues.

TaxBit Dashboard
Broker Cost Basis

Automated digital asset cost basis calculations

Calculate, adjust, and track accurate digital asset cost basis to power lot-level gain/loss information, recording in ledger, and seamlessly use in upstream information reporting.

Broker Cost Basis
Information Reporting

Confidently generate all tax forms, the first-time

Seamlessly calculate, file, and host all your form needs, from 1099-DA, MISC, NEC, B, and everything in between.

Information Reporting

Digital Asset eBook

Expert Advice

A Complete Guide for Digital Asset Brokers White Paper

Tax Compliance is more important than ever, with new regulations for the entire digital asset industry, enterprises can use this white paper on how to navigate the complex world of crypto tax compliance.

Download Now

Regs Features Highlights Part 2

CBI - Digital Assets

Eliminate missing cost basis at the source

Banish “missing cost basis” issues by joining an industry-wide network to automatically calculate, share, and file accurate cost basis for all transactions.

Cost Basis Interchange
Digital W9/W8

Automate your tax documentation process

Deploy a seamlessly embedded workflow to collect, validate, and store forms W-9, W-8BEN, or W-8BEN-E from your users and utilize them for information reporting purposes.

Digital W9/W8
Tax Center APIs

Make tax reporting easier on customers

Give your customers real-time insights and access to tax forms by using our tax center APIs to embed information reporting into your application or customer experience.

Tax Center