The final rule stated that it became effective on 28 February 2025.
The US Internal Revenue Service (IRS) has issued a final rule revoking its December 2024 rule on “Gross Proceeds Reporting by Brokers that Regularly Provide Services Effectuating Digital Asset Sales.”
The final rules require brokers to file information returns and provide payee statements detailing the gross proceeds from digital asset transactions conducted on behalf of customers in specific sales or exchanges.
The IRS action follows after the US Treasury Department and the IRS published a final rule, titled “Gross Proceeds Reporting by Brokers that Regularly Provide Services Effectuating Digital Asset Sales,” in the Federal Register on 30 December 2024 (Final Rule).
The December 2024 final rule, which was later revoked, sought to modify the Income Tax Regulations under section 6045 of the Code. It mandated that certain participants in the decentralised finance industry file and provide information returns as brokers. The Final Rule stated that it became effective on 28 February 2025.
This decision follows the passage of a joint resolution by Congress and its subsequent signing by the president, which disapproves of the rule under the Congressional Review Act (CRA).
Consequently, the Treasury and the IRS, in line with the CRA, have eliminated the December 2024 rule from the Code of Federal Regulations, reinstating the earlier section 6045 regulations.
Earlier, the Treasury and IRS published a document (TD 10021) finalising final regulations regarding information reporting by brokers that regularly provide services effectuating certain digital asset sales and exchanges on 30 December 2024.
