September 16, 2021

Volume XI, Number 259

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President Biden’s Proposal to Enhance Cryptocurrency Information Reporting Regime on Form 1099

On May 28, 2021, President Biden released some of the legislative items that would be added by his American Families Plan, which includes a provision that could impact tax information reporting for cryptocurrency asset exchanges and custodians. If enacted, this proposal could require substantial effort to implement and administer.

President Biden’s American Families Plan includes a provision which would for the first time require cryptocurrency asset exchanges and custodians to report financial information to the IRS on an annual Form 1099 information return. These reporting requirements would include cases in which taxpayers buy crypto assets from one broker and then transfer the crypto assets to another broker, and businesses that receive crypto assets in transactions with a fair market value greater than $10,000.

This compliance initiative would not begin until the 2023 tax year; however, it will take significant time in advance of this period for financial institutions to implement these requirements into their annual information reporting process.

A two-page summary of this provision which was released by the White House can be found here. We will continue to monitor this legislation and will publish an updated alert if this provision is included in the final American Families Plan. 

Copyright © 2021, Hunton Andrews Kurth LLP. All Rights Reserved.National Law Review, Volume XI, Number 179
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About this Author

Timothy L. Jacobs Attorney Hunton Andrews Kurth Washington DC Richmond
Partner

Tim’s practice focuses on all areas of federal income tax law, with emphasis on tax controversy and litigation matters.

Tim served as an attorney-advisor to the Hon. Michael B. Thornton (2003-2005) and the Hon. Robert P. Ruwe (2001-2003) on the US Tax Court, and has particular knowledge in the areas of Tax Court practice, procedure, and litigation. Tim practices regularly in the Tax Court and the US Court of Federal Claims and also is admitted to practice in the US Supreme Court, and the US Courts of Appeals for the Third, Fourth, Sixth and...

202-955-1669
Jason Feingertz Tax Attorney Hunton AK Law Firm
Associate

Jason maintains a general corporate tax practice, advising clients on state, federal and international tax matters.

He represents clients in various industries in tax planning, audit defense, and tax litigation. Jason also advises clients on federal income tax issues in mergers and acquisitions, including tax-free reorganizations. 

When focusing on state and local tax matters, Jason provides advice in the areas of multistate income, franchise and sales and use taxes, with emphasis in New York and New Jersey. In addition...

212-850-2823
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