**IRS Expands Crypto Reporting Rules for Brokers**
The IRS has finalized new regulations requiring brokers to report digital asset transactions, including those on decentralized exchanges. Starting in 2027, brokers must disclose gross proceeds from crypto sales and details about the taxpayers involved.
Key points:
- Only DeFi front-end platforms are classified as brokers.
- The rules focus on platforms facilitating transactions, even via smart contracts.
- Estimated 650-875 DeFi brokers will be impacted.
- Aims to enhance transparency and taxpayer compliance.
The IRS insists these rules align with long-standing broker regulations and aren't biased against DeFi.