Tax Code Section 6045 is a provision within the United States Internal Revenue Code that mandates brokers to report gross proceeds from sales of certain property to the Internal Revenue Service. This section aims to ensure accurate tax reporting by providing the IRS with information on taxable transactions. It covers a broad array of assets, including stocks, bonds, and, increasingly, digital assets. Compliance with this section is essential for financial intermediaries.
Context
Tax Code Section 6045 has become highly relevant to the digital asset sector as the IRS works to clarify reporting obligations for crypto transactions. Recent interpretations and proposed rules extend the definition of “broker” to include certain digital asset service providers, thereby subjecting them to these reporting requirements. This development creates new compliance burdens for crypto exchanges and other intermediaries, necessitating changes in their data collection and submission processes.
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