The post US Treasury Unveils DeFi Broker Tax Reporting Rule appeared on BitcoinEthereumNews.com.

The US Treasury Deaprtment has finally released the long-awaited DeFi broker tax reporting framework in its bid to capture revenue from the growing industry. According to the released framework, platforms offering trading services to report user transactions with the Internal Revenue Service (IRS). DeFi Broker Tax Framework: Highlights and Criticism According to the summary from ConsenSys lawyer Bill Hughes, the reporting requirements from the trading frontend will apply to both US persons and non-US persons. Compliance with the DeFi broker tax reporting framework will commence in 2027. When compliance commences, the IRS will require DeFi brokers to send Form 1099 to platforms users for tax reporting pursposes. Ideally, Decentralized Finance (DeFi) protocols, per current operational model are non custodial. This means that user’s biometric information are not kept, alongside with the user’s funds. With the new reporting framework, this may have to charge in a bid to comply with the DeFi broker tax provisions. In addition to the name and transaction details, market experts believe the new reporting standard might require protocols to include addresses and other sensitive details. These conditions have drawn uproar from members of the crypto community. Hughes noted that this framework will be accompanied by a lawsuit. This is possibly in demand for its rollback. The legal expert noted that the tax provisions will impact all asset types including NFTs and stablecoins. Treasury/IRS has finalized their DeFi broker tax reporting rule. Trading front ends would have to track and report on user activity – both US persons and non-US persons- starting in 2027. And it applies to the sale of every single digital asset – including NFTs and even… pic.twitter.com/CtFox668yn — Bill Hughes : wchughes.eth 🦊 (@BillHughesDC) December 27, 2024 Hughes noted that the US Treasury had completed the DeFi broker tax rules long ago but…

---

Filed under: News - @ December 27, 2024 10:15 pm