IRS Reporting Requirements For Brokers Won’t Affect Crypto Miners & Stakers

The latest out of Washington regarding the IRS and the infrastructure bill/debacle is that “miners, stakers, “as well as software and hardware providers” won’t be considered “brokers” anymore”.

The Infrastructure Bill required “digital-asset brokers turn over information on their clients’ transactions to the IRS.” The problem was, “miners and stakers, don’t have access to that kind of information, making compliance difficult — if not impossible.” The task of clarifying “the reporting requirements has shifted to Treasury, which is tasked with interpreting the law through regulations.”

Apparently, they saw the light and will pass legislation that eliminates crypto miners and stakers from the “brokers” list. The article quotes Jonathan Davidson, Treasury Assistant Secretary for Legislative Affairs, who puts in clear language:

“Ancillary parties who cannot get access to information that is useful to the IRS are not intended to be captured by the reporting requirements for brokers.”

Not only that, according to Davidson, Treasury is at the moment taking into consideration:

“The extent to which other parties in the digital asset market, such as centralized exchanges and those often described as decentralized exchanges and peer-to-peer exchanges, should be treated as brokers.”

So, legal clarity is on the horizon.

Master Asked on February 14, 2022 in Cryptocurrency.
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