Review of New IRS Regulations on Digital Asset Transaction Reporting for Brokers

On June 28, 2024, the final regulations concerning digital asset reporting were released (26 CFR Parts 1, 31, and 301). These regulations will take effect for the tax year 2025.

The regulations require brokers to file information returns and furnish payee statements that report gross proceeds and adjusted basis for digital asset transactions. They also mandate that real estate reporting persons file information returns and furnish payee statements for real estate purchasers using digital assets to acquire property. These rules are crucial for attorneys advising clients on the accurate reporting and compliance of digital asset transactions.

To provide a comprehensive understanding of these regulations, the Beverly Hills Bar Association is hosting two panels on July 23 and July 25, both at 10 AM PST. The first panel will focus on the broker reporting requirements, while the second panel will examine the broader implications, including the computation of gross proceeds and basis for digital asset transactions.

The first panel will guide attorneys on broker reporting requirements, covering obligations like filing information returns, payee statements, and compliance timelines. The second panel will address the broader implications, including the computation of gross proceeds and basis, and how new reporting requirements affect these metrics. Attorneys will gain crucial insights for advising clients on these regulatory changes.

Panel 1: Application to the Broker and the Reporting Itself - What Attorneys Need to Know

This program will focus on the application of the final regulations, guiding attorneys who advise brokers and taxpayers on what to expect from broker reporting requirements. It will cover the specific obligations for brokers, including filing information returns and furnishing payee statements. This session will explain the processes involved, specifying who is required to report, the types of transactions covered, and the timelines for compliance. Attorneys will gain crucial insights into advising their clients on the practical aspects of broker reporting under the final regulations.

Tuesday, July 23, 10:00 am - 11:30 am Pacific via ZOOM

Attend

BHBA members attend all CLE webinars for free. There is a fee for non-members. Check out all membership options at www.bhba.org/membership.

Earn 1.5 hours of General CLE or Taxation Law LSCLE credit.

Jason Schwartz

Partner

Fried Frank

Norman Hannawa

Head of Tax and Accounting Solutions

NODE40

Philipp Behrendt

Associate Attorney

Hochman Salkin Toscher Perez P.C.

(Moderator)

Panel 2: Effects Beyond Broker Reporting—Computation of Gross Proceeds and Basis

This panel will examine the broader implications of the final regulations, particularly in relation to the computation of gross proceeds and basis, guiding attorneys on these critical issues. This session will discuss how the new reporting requirements influence the calculation of these financial metrics, which are essential for accurate tax reporting and compliance. Experts will explore the methodologies for determining gross proceeds and basis in digital asset transactions, highlighting the challenges and opportunities presented by the regulatory changes. Attorneys will gain valuable insights into advising their clients on these complex regulatory changes.

Thursday, July 25, 10:00 am - 11:30 am Pacific via ZOOM

Attend

BHBA members attend all CLE webinars for free. There is a fee for non-members. Check out all membership options at www.bhba.org/membership.

Earn 1.5 hours of General CLE or Taxation Law LSCLE credit.

Roger M. Brown

Global Head of Tax Strategy

Chainalysis Inc.

Amir Marmar

Founder / CEO

JFDI Accountants

Philipp Behrendt

Associate Attorney

Hochman Salkin Toscher Perez P.C.

(Moderator)

This program is presented by the Taxation Law section, chaired by Michele L. Weiss. The section is sponsored by Hochman Salkin Toscher Perez P.C. This program is co-sponsored by the International section, chaired by Jonathan Sue. Find out more at www.bhba.org.

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