Recently, the American Bar Association (ABA) submitted comments and recommendations to the IRS about investment broker reporting requirements. This was in response to the Aug. 2023, release of proposed regulations under Sec. 6045 that instructed brokers to include transactions involving digital assets. The ABA contends that the regulations threaten “overly expansive and duplicative reporting, which could lead to taxpayer confusion and administrative burden.” The ABA is also worried about a newly expansive definition of “digital assets.” Among its suggestions is that the IRS adopts a multiple broker rule and that final regulations clarify to whom and how backup withholding rules apply.
Our Blog 