A bill to revise the definition of a broker for purposes of certain reporting requirements with respect to digital asset transfers under the Internal Revenue Code of 1986, and for other purposes.

Bill: 117-s-4751
Sponsor: full_name: Sen. Toomey, Patrick [R-PA]
Introduced: 2022-08-03
Policy area: Finance and Financial Sector
Latest action: action_date: 2022-08-03
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2022-08-03
action_desc: Introduced in Senate
text: <p>This bill excludes certain persons from being considered a broker for tax reporting purposes. Under current law, the transfer of digital assets from a broker to a nonbroker requires the broker to file a return beginning on January 1, 2024. The bill provides that a broker does not include any person solely engaged in the business of (1) validating distributed ledger transactions, or (2) selling hardware or software for which the sole function is to permit access to digital assets on a distributed ledger.</p>

tv_txt: II 117th CONGRESS 2d Session S. 4751 IN THE SENATE OF THE UNITED STATES August 3, 2022 Mr. Toomey (for himself, Ms. Sinema , Ms. Lummis , Mr. Warner , and Mr. Portman ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To revise the definition of a broker for purposes of certain reporting requirements with respect to digital asset transfers under the Internal Revenue Code of 1986, and for other purposes.

1. Information reporting for brokers and digital assets (a) Clarification of definition of broker Subparagraph (D) of section 6045(c)(1) of the Internal Revenue Code of 1986, as added by section 80603(a)(3) of the Infrastructure Investment and Jobs Act ( Public Law 117–58 ), is amended by striking is responsible for regularly providing any service effectuating and inserting regularly effectuates . (b) Rules of construction Section 80603 of the Infrastructure Investment and Jobs Act is amended by striking subsection (d) and inserting the following: (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, without providing other functions or services, or (B) selling hardware or software for which the sole function is to permit persons to control private keys which are used for accessing digital assets on a distributed ledger. (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. . (c) Effective date The amendments made by this section shall take effect as if included in the enactment of section 80603 of the Infrastructure Investment and Jobs Act.