[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5083 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 5083
To amend the Internal Revenue Code of 1986 to clarify the definition of
a broker, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 23, 2021
Mr. Soto introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to clarify the definition of
a broker, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Cryptocurrency Tax Reform Act''.
SEC. 2. 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 adding at the end 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 (iii) 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:
``(b) 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),''.
(C) 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) Rules of Construction.--
(1) Definition of broker.--Nothing in this section or the
amendments made by this section shall be construed to create
any inference that a person described in section 6045(c)(1)(D)
of the Internal Revenue Code of 1986, as added by this section,
includes any person solely engaged in the business of--
(A) validating distributed ledger transactions,
(B) selling hardware or software for which the sole
function is to permit a person to control private keys
which are used for accessing digital assets on a
distributed ledger, or
(C) developing digital assets or their
corresponding protocols for use by other persons,
provided that such other persons are not customers of
the person developing such assets or protocols.
(2) Brokers and treatment of digital assets.--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--
(A) whether any person is a broker under section
6045(c)(1) of the Internal Revenue Code of 1986, or
(B) whether any digital asset is property which is
a specified security under section 6045(g)(3)(B) of
such Code.
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