Digital Asset Broker Reporting Update (Completed)

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The broker reporting of digital asset changes enacted in late 2021 led to extensive proposed regulations in August 2023 and likely final regulations in fall 2024. These regulations cover many digital asset transactions but not all of them. The proposed regulations provided different basis tracking rules than were in the IRS virtual currency FAQs released in 2019. This webinar covers key aspects of the broker reporting rules and related regulations on amount realized and basis, what transactions will be reported on Form 1099-DA and which will not and recordkeeping considerations for due diligence.

Topics Covered

• Key definitions provided by the broker reporting final regs
• The reporting structure for digital asset transactions involving brokers and how that information should be reviewed before reporting on the recipient’s income tax return
• Planning and due diligence considerations and questions to ask of clients who hold and use digital assets

Learning Objectives

• Explain the purpose, operation and key compliance aspects of the broker reporting regulations for digital assets
• Define key terms used in the reporting rules
• Explain recordkeeping requirements for holders of digital assets, which transactions are likely to be reported on Form 1099-DA (and which will not), and reconciliation actions that will be needed before filing income tax returns

Level
Update

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of digital assets such as virtual currency.

Advance Preparation
None