With a tiered approach to compliance, the Internal Revenue Service has broadened reporting requirements and compliance for digital assets to match their complexity as currency continues to permeate the financial sector. This means that regulations could be subject to change more frequently as different aspects of reporting requirements are identified and businesses adapt their internal systems and processes to meet these new requirements before unleashing more complex cost basis tracking and reporting.
Some examples of such changes may likely include the introduction of the “1099-DA” form, special rules for qualifying stablecoins and specified NFT’s, backup withholding requirements, multiple […]