A year ago, we indicated how the IRS and other government organizations were increasing regulations for digital assets and crypto brokers in our blog. Now we can confirm the specific reports, instructions and the due date for these tax forms. Beginning with transactions in calendar year 2025, brokers who facilitate digital asset transactions (such as
The IRS has been putting more focus on partnerships in recent times. Back in June 2024, the IRS released a statement were the Agency would put more focus on "high-income compliance issues" and "... to combat abusive partnership transactions" which mainly related to basis shifting transactions. Then, the IRS targeted specifically three groups: " Transfer
In the Fact Sheet 2024-21 Basis shifting, the IRS detailed the guidance to avoid abusive basis shifting by related-party partnership members, such as transfers, distributions or liquidations. This is part of a broader targeted effort against partnerships and high income taxpayers. For the basis shifting, the IRS described the abuse as a evasion of taxes
