PANews, August 25th, the U.S. Treasury Department (Treasury Department) and the Internal Revenue Service (IRS) today released proposed regulations on the sale and trading of digital assets by brokers to combat tax evasion and tax evasion, while helping law-abiding taxpayers understand that they are liable for the sale. Or the taxes owed in exchange for digital assets. The proposed regulations, which will be open for public comment and feedback until Oct. 30, will require digital asset brokers to report certain sales and transactions. The proposed regulations would clarify and adjust the rules regarding tax reporting of broker information so that digital asset brokers are subject to the same information reporting rules as brokers of securities and other financial instruments. Under current law, taxpayers are taxed on gains and are entitled to deduct losses when digital assets are sold, but calculating their gains is difficult and expensive for many taxpayers. The proposed rules would require brokers to provide a new 1099-DA form to help taxpayers determine whether they owe taxes, and would help taxpayers avoid complex calculations or pay for digital asset tax preparation services in order to file their tax returns. These regulations align tax reporting for digital assets with tax reporting for other assets, thereby avoiding preferential treatment between different types of assets. Under the proposed rules, brokers would be required to report any information on digital asset sales and transactions in the first year, in 2026, and sales and transaction information in 2025. In passing, the nonpartisan Joint Committee on Taxation (JCT) noted that the use of reliable and objective third-party income verification reduces tax evasion and leads to more accurate reporting of income on tax returns. JCT estimates IIJA grants will raise nearly $28 billion over 10 years. Treasury and the IRS say they welcome comments and feedback on the proposed regulations from affected taxpayers, industry, and other stakeholders. The deadline for acceptance of written comments is October 30, 2023. A public hearing is scheduled for November 7, 2023, and a second public hearing date of November 8, 2023 can be accommodated in one day if more than the required number of speakers are requested to speak at the first hearing. Treasury and the IRS will carefully consider all public comments before issuing final regulations.