On November 5, 2021, the House of Representatives passed a $1.2 trillion infrastructure bill, which means that the legislation is headed to President Joe Biden for signing into law. The Infrastructure and Jobs Act includes information reporting requirements for brokers and digital assets. This impacts the broker reporting rules in Internal Revenue Code (IRC) sections 6045, 6045A, and 6050I and their corresponding regulations.
So, what is next? Once President Biden signs the Infrastructure Bill into law, the IRS and Treasury will have to develop regulations and other guidance for taxpayers required to submit the impacted reports. The IRS will have to provide additional guidance for new filing requirements on Form 1099-B and 8300.