Concern About Infrastructure Bill

I see a lot of hoopla, but no hard information. So here is the actual text.

https://www.congress.gov/bill/117th-congress/house-bill/3684/text

Sorry for the bad formatting.

———

SEC. 80603. INFORMATION REPORTING FOR BROKERS AND DIGITAL ASSETS.

(a) Clarification of Definition of Broker.–Section 6045(c)(1) of the Internal Revenue Code of 1986 is amended–

(1) by striking “and'' at the end of subparagraph (B),

(2) in subparagraph (C)– (A) by striking “any other person who (for a consideration)'' and inserting “any person who (for consideration)'', and (B) by striking the period at the end and inserting “, and'', and

(3) by inserting after subparagraph (C) the following new subparagraph: “

(D) any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.''.

(b) Reporting of Digital Assets.–

(1) Brokers.–

(A) Treatment as specified security.–Section 6045(g)(3)(B) of the Internal Revenue Code of 1986 is amended by striking “and'' at the end of clause (iii), by redesignating clause (iv) as clause (v), and by inserting after clause (iii) the following new clause: “(iv) any digital asset, and''.

(B) Definition of digital asset.–Section 6045(g)(3) of such Code is amended by adding at the end the following new subparagraph: “(D) Digital asset.–Except as otherwise provided by the Secretary, the term `digital asset' means any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary.''.

(C) Applicable date.–Section 6045(g)(3)(C) of such Code is amended– (i) in clause (ii), by striking “and'' at the end, (ii) by redesignating clause (iii) as clause (iv), and (iii) by inserting after clause (ii) the following: “(iii) January 1, 2023, in the case of any specified security which is a digital asset, and''.

(2) Furnishing of information.–

(A) In general.–Section 6045A of such Code is amended– (i) in subsection (a), by striking “a security which is'', and (ii) by adding at the end the following: “

(d) Return Requirement for Certain Transfers of Digital Assets Not Otherwise Subject to Reporting.–Any broker, with respect to any transfer (which is not part of a sale or exchange executed by such broker) during a calendar year of a covered security which is a digital asset from an account maintained by such broker to an account which is not maintained by, or an address not associated with, a person that such broker knows or has reason to know is also a broker, shall make a return for such calendar year, in such form as determined by the Secretary, showing the information otherwise required to be furnished with respect to transfers subject to subsection (a).''.

(B) Reporting penalties.–Section 6724(d)(1)(B) of such Code is amended by striking “or'' at the end of clause (xxv), by striking “and'' at the end of clause (xxvi), and by inserting after clause (xxvi) the following new clause: “(xxvii) section 6045A(d) (relating to returns for certain digital assets),''.

(3) Treatment as cash for purposes of section 6050i.– Section 6050I(d) of such Code is amended by striking “and'' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting “, and'', and by inserting after paragraph (2) the following new paragraph: “(3) any digital asset (as defined in section 6045(g)(3)(D)).''.

(c) Effective Date.–The amendments made by this section shall apply to returns required to be filed, and statements required to be furnished, after December 31, 2023.

(d) Rule of Construction.–Nothing in this section or the amendments made by this section shall be construed to create any inference, for any period prior to the effective date of such amendments, with respect to–

(1) whether any person is a broker under section 6045(c)(1) of the Internal Revenue Code of 1986, or (2) whether any digital asset is property which is a specified security under section 6045(g)(3)(B) of such Code.