Call for a Consultation (602) 200-7399


How the Infrastructure Investment & Jobs Act Could Impact Cryptocurrency Tax Reporting

Posted by Brandon Keim | Oct 20, 2021 | 0 Comments

Cryptocurrency has taken the world by storm, so much so that Congress included tax provisions regarding cryptocurrency in the Infrastructure Investment & Jobs Act. The Act is currently making its way through the legislative process, so these provisions aren't final. But it is important to be informed of the provisions so that taxpayers are prepared when the provisions do take effect.

Cryptocurrency Tax Provisions in the Infrastructure Investment & Jobs Act

The Act, if approved as currently written, would require brokers – broadly defined as “any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person” – to report cryptocurrency transactions to the Internal Revenue Service (IRS). Brokers would also be required to furnish written statements to their customers regarding transfers of covered securities, including digital assets like cryptocurrency, made on behalf of the customers.

Additionally, the Act would make changes to the reporting requirements for taxpayers. The Tax Code currently requires taxpayers to report business transactions of $10,000 or more in cash to the IRS. Under the Act, cryptocurrency would be treated as cash for reporting purposes.

Criticism of Cryptocurrency Provisions in Infrastructure Investment & Jobs Act

The Act's broad definition of “broker” is one of the Act's most controversial provisions because it encompasses validators (such as miners and stakers) and entities that sell crypto-related hardware or software.

Additionally, critics of the Act's cryptocurrency provisions fear that the Act would require miners, stakers, and hardware/software companies to report information that is impossible for those who use blockchain technologies to obtain. Some amendments have been proposed to clarify that the reporting requirements don't apply to miners and validators.

Talk to an Experienced Tax Attorney

The proposed provisions would take effect in 2023, pending final approval of the Act by Congress. If you have questions regarding the tax impact of cryptocurrency or other digital assets, contact an experienced tax attorney. If you need help, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.

About the Author

Brandon Keim

A Certified Tax Law Specialist, CPA, partner at Frazer Ryan Goldberg & Arnold LLP, and former Senior IRS Trial Attorney, Brandon Keim holds an LL.M. in Taxation from Georgetown University Law Center.


There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment


Aenean lacinia bibendum nulla sed consectetur. Donec sed odio dui. Maecenas sed diam eget risus varius blandit sit amet non magna. Nulla vitae elit libero, a pharetra augue. Curabitur blandit tempus porttitor. Morbi leo risus, porta ac consectetur ac, vestibulum at eros. Cras justo odio, dapibus ac facilisis in, egestas.

The act of visiting or communicating with Brandon A. Keim via this website or by email does not constitute an attorney-client relationship. Communications from non-clients via this website are not subject to client confidentiality or attorney-client privilege. Further, the articles, discussion, commentary, forms and sample documentation contained in this website are offered as general guidance only and are not to be relied upon as specific legal advice. For legal advice on a specific matter, please consult with an attorney who is knowledgeable and experienced in that area. Attorneys listed in this website practice only in the jurisdictions in which they are admitted. This website is governed by the Arizona Rules of Professional Conduct.