Deep inside Biden’s Infrastructure Law

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1. What did the law change?
Starting in 2023, cryptocurrency brokers such as Coinbase will be required to record transactions, tracking them for customers and the IRS, similar to the way stock and bond brokers currently do via tax form 1099-B. They’ll have to disclose the names, addresses and phone numbers of their customers, the gross proceeds from sales and any capital gains or losses. Also, businesses that receive payments of $10,000 or more in crypto must report the identity of the sender to the government, mirroring a similar anti-money laundering rule for cash transactions of that amount.

2. What does this mean for taxpayers?
Potentially, not much. The Internal Revenue Service already treated virtual currencies as property, so taxes are owed when it is sold or exchanged, similar to a stock or bond. (If the asset is sold for less than the original purchase price, it creates a capital loss that can offset other gains.) Similarly, someone paid in cryptocurrency owes income taxes it. And the IRS had already started cracking down on people not reporting their crypto transactions. It recently added a question to the individual tax return, Form 1040, prompting people to report any receipts, sales or exchanges of virtual currencies.