DeFi Education Fund’s Post

The Department of Treasury and the IRS have published the long-anticipated proposed regulations (REG-122793-19) governing reporting requirements for sales and exchanges of certain digital assets under sections 6045 and 6050W. Click to learn more:

The IRS released a draft Form 1099-DA a few days ago. See below for a blog post my partner Phil Gaudiano wrote regarding our observations and concerns about the draft form. In addition to what Phil mentioned in his blog post, I want to say that the draft Form 1099-DA is requiring a lot more information than many people expected previously. For example, the form requires the name and/or explanation of non-cash proceeds (e.g., when using crypto to pay for services). It also requires detailed information regarding digital asset transfers. It looks like disclosure of digital asset cost basis is not required if the asset is purchased before 2023, which will give brokers some relief in terms of tracking costs basis, but that will also make 1099-DA less useful for taxpayers. We believe the requirement for brokers to file Form 1099-DA for their customers will help bring more taxpayers into crypto tax filing compliance. But at the same time, it will also cause a heavy burden on crypto brokers for getting all the required information for filing 1099-DAs. Moreover, taxpayers most likely cannot rely on the Form 1099-DA they receive because in many cases, information reported in the form is incomplete or incorrect. To ensure proper tax compliance and correct crypto tax reporting, we highly recommend crypto investors/users to work with a qualified crypto tax specialist. It will be a big mistake to blindly rely on 1099-DAs and/or use a crypto tax software to prepare crypto tax report without doing a thorough reconciliation. #cryptotax #1099-DA #cryptocurrency #taxcompliance

The IRS will prioritize collection efforts on individuals earning greater than $1,000,000 but have federal tax liability in excess of $250,000. What steps can you take to decrease your audit risk and increase your compliance? The first step is to make sure your financial records are well organized, accurate, and compliant. Let us know if you need assistance. #IRS #IRSSmallBusiness #IRSAI

The IRS will prioritize collection efforts on individuals earning greater than $1,000,000 but have federal tax liability in excess of $250,000. What steps can you take to decrease your audit risk and increase your compliance? The first step is to make sure your financial records are well organized, accurate, and compliant. Let us know if you need assistance. #IRS #IRSSmallBusiness #IRSAI

So this happened. Final #crypto reporting regulations. True to form - the eve of a holiday week... If we thought the proposed version was lengthy, check out this 365 page version. While there's a lot to digest, I'm sure everyone's wondering about a few things: 1) Treasury and the IRS are taking a "phased-in" approach, requiring "custodial industry participants" to report transactions occurring on or after Jan. 1, 2025, but shifting the covered security basis reporting to apply to assets acquired on or after Jan. 1, 2026 - a major shift from the proposed Jan. 1, 2023, date.  2) The removal of time, digital asset address, and transaction ID from Form 1099 DA (hopefully re-drafted soon). 3) Guidance for non-custodial "middleman" industry participants is not yet published and will have a separate applicability date. So, shall we say: Happy 4th of July and THANK YOU Uncle Sam and Aunt Martha! Happy reading! More soon and a webcast on July 16th with our #crypto informational reporting team. The BNA has only been live for a month and already we need revisions! Jonathan Cutler Conor O'Brien Denise Hintzke Susan Segar Peter Larsen Roy Ben-Hur Richard Higgins Jeanne Murphy Erica Lacerenza Jawad Ahmad, CPA Jon Case, CPA CJ Burke Jake Lewtan, CPA Aaron Turenshine Craig Darrah Bloomberg Tax

New IRS Form 1099-DA for reporting digital asset transactions in 2025 introduces complexities and potential pitfalls. Read full blog post below.

What is the de minimis exemption and why is it important? 🤔 Simply put, it can allow smaller financial advisors to avoid regulation or taxation for certain small-scale transactions or activities in states where they have a limited number of clients. In our new blog post, we uncover the rule so you can comply with regulations and avoid penalties. Read more at: https://shorturl.at/beN67 #SmartAsset #FinancialAdvisors

Regulation Update: The Current Status of the Edinburgh Reforms and what next for financial services firms? The Financial Services and Markets Bill received royal assent on 29th June 2023. This act is critical to the delivery of the government’s post-Brexit vision for economic growth, and the creation of an open, sustainable, and technologically advanced financial services sector. Importantly the Bill enables the delivery of the long-anticipated Edinburgh Reforms. As we approach the anniversary of the Chancellor’s announcement of this package of measures, let’s recap on what the reforms mean for our clients in the financial services sector. What are the Edinburgh Reforms? Also known as Big Bang 2.0, the Edinburgh Reforms are a set of sweeping regulatory changes for the UK’s financial services industry.  The package of reforms advances a set of 30 sector-wide policy initiatives as the UK moves away from EU retained law, and transitions to the UK Future Regulatory Framework, or Smarter Regulatory Framework (SRF). The aim of the reforms is to build an "agile, proportionate and homegrown" rule book to shape the future of financial services regulation specifically designed for the UK. In announcing the measures in December 2022, Chancellor Jeremy Hunt said: "leaving the EU gives us a golden opportunity to reshape our regulatory regime and unleash the full potential of our formidable financial sector".  What happens next? According to the Government, work has already begun in respect of Tranche 1 of the reforms. This includes aspects of the UK Markets in Financial Instruments Directive (UK MiFID) as part of a broader Wholesale Markets Review, the securitisation review, and the Solvency II review. Tranche 2 will include further implementation of the Wholesale Markets Review as well as reforms of Packaged Retail and Insurance-Based Investment Products (PRIIPs), short-selling, taxonomy, the Payment Services Directive, the E-Money Directive, and the Capital Markets Directive. Head over to our website for a closer look at:  - Some of the changes we can expect. - What can financial services firms expect? As ever, if you would like more information about how this might affect your business, or advice on the rapidly-changing financial services regulatory environment, contact a member of the Leverets team

2023 may be an unpredictable year for #marketingagencies, but Spartan Accounting Group is on top of the latest updates, news and trends when it comes to business accounting. We help you face any challenges that might arise. Read our blog at https://lnkd.in/gG2AqiWC to find out what is currently happening in business news.

It is good to see that the US Treasury Department has made meaningful revisions to its draft #beneficialownership reporting form. This followed a "significant number" of comments pointing out the form's weaknesses. With the US sitting squarely at the top of Tax Justice Network's Financial Secrecy Index, improving #transparency in corporate ownership, as set out in the Corporate Transparency Act, is a key part of dismantling systems of secrecy that allow illicit finance to flow through both the US's domestic and the international financial system. https://lnkd.in/eMn8sGxK