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Cryptoladdess
@cryptoladdess
You'll want to know that congress has overturned the IRS's broker reporting rules for decentralized finance platforms. I have compiled what you need to know: 1. Congress has overturned the Internal Revenue Service's (IRS) broker reporting rules for decentralized finance platforms through the passage of H.J. Res. 25. This resolution, enacted under the Congressional Review Act (CRA), nullifies the IRS's previous attempt to impose traditional financial reporting requirements on some participants in Defi. 2. The now defunct regulations, outlined in Treasury Decision (T.D.) 10021, would have birthed compliance obligations for DeFi platforms by classifying them as financial brokers. Under these rules, the platforms would have been required to file Form 1099-DA for user transactions and report customer information to the IRS. The regulations targeted services facilitating digital asset trades but exempted validators and non-custodial wallet providers. What's the effect?
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Cryptoladdess
@cryptoladdess
3. The effect of the congress reversal is that DeFi platforms retain their exemption from broker reporting, while centralized exchanges remain subject to existing rules under T.D. 10000. Congressional estimates suggest this decision may reduce projected tax revenue by $3.9 billion over the next decade. The CRA also prohibits the IRS from reintroducing similar rules without congressional approval.
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Ayo
@ayookuns
Damn this is informative
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