Sec. 1.6045-0 Table of contents.
In order to facilitate the use of §1.6045-1, this section lists the paragraphs contained in §1.6045-1.
§1.6045-1 Returns of information of brokers and barter exchanges.
(a) Definitions.
(1) Broker.
(2) Customer.
(i) In general.
(ii) Special rules for payment transactions involving digital assets.
(3) Security.
(4) Barter exchange.
(5) Commodity.
(6) Regulated futures contract.
(7) Forward contract.
(8) Closing transaction.
(9) Sale.
(i) In general.
(ii) Sales with respect to digital assets.
(A) In general.
(B) Dispositions of digital assets for certain property.
(C) Dispositions of digital assets for certain services.
(D) Special rule for sales effected by processors of digital asset payments.
(10) Effect.
(i) In general.
(ii) Actions relating to certain options and forward contracts.
(11) Foreign currency.
(12) Cash.
(13) Person.
(14) Specified security.
(15) Covered security.
(i) In general.
(ii) Acquired in an account.
(iii) Corporate actions and other events.
(iv) Exceptions.
(16) Noncovered security.
(17) Debt instrument, bond, debt obligation, and obligation.
(18) Securities futures contract.
(19) Digital asset.
(i) In general.
(ii) No inference.
(20) Digital asset address.
(21) Digital asset middleman.
(i) In general.
(ii) [Reserved]
(iii) Facilitative service.
(A) [Reserved]
(B) Special rule involving sales of digital assets under paragraphs (a)(9)(ii)(B) through (D) of this section.
(22) Processor of digital asset payments.
(23) Stored-value card.
(24) Transaction identification.
(25) Wallet, hosted wallet, unhosted wallet, and held in a wallet or account.
(i) Wallet.
(ii) Hosted wallet.
(iii) Unhosted wallet.
(iv) Held in a wallet or account.
(b) Examples.
(c) Reporting by brokers.
(1) Requirement of reporting.
(2) Sales required to be reported.
(3) Exceptions.
(i) Sales effected for exempt recipients.
(A) In general.
(B) Exempt recipient defined.
(C) Exemption certificate.
(1) In general.
(2) Limitation for corporate customers.
(3) Limitation for U.S. digital asset brokers.
(ii) Excepted sales.
(iii) Multiple brokers.
(A) In general.
(B) Special rule for sales of digital assets.
(iv) Cash on delivery transactions.
(v) Fiduciaries and partnerships.
(vi) Money market funds.
(A) In general.
(B) Effective/applicability date.
(vii) Obligor payments on certain obligations.
(viii) Foreign currency.
(ix) Fractional share.
(x) Certain retirements.
(xi) Short sales.
(A) In general.
(B) Short sale closed by delivery of a noncovered security.
(C) Short sale obligation transferred to another account.
(xii) Cross reference.
(xiii) Short-term obligations issued on or after January 1, 2014.
(xiv) Certain redemptions.
(4) Examples.
(5) Form of reporting for regulated futures contracts.
(i) In general.
(ii) Determination of profit or loss from foreign currency contracts.
(iii) Examples.
(6) Reporting periods and filing groups.
(i) Reporting period.
(A) In general.
(B) Election.
(ii) Filing group.
(A) In general.
(B) Election.
(iii) Example.
(7) Exception for certain sales of agricultural commodities and commodity certificates.
(i) Agricultural commodities.
(ii) Commodity Credit Corporation certificates.
(iii) Sales involving designated warehouses.
(iv) Definitions.
(A) Agricultural commodity.
(B) Spot sale.
(C) Forward sale.
(D) Designated warehouse.
(8) Special coordination rules for reporting digital assets that are dual classification assets.
(i) General rule for reporting dual classification assets as digital assets.
(ii) Reporting of dual classification assets that constitute contracts covered by section 1256(b) of the Code.
(iii) Reporting of dual classification assets cleared or settled on a limited-access regulated network.
(A) General rule.
(B) Limited-access regulated network.
(iv) Reporting of dual classification assets that are interests in money market funds.
(v) Example: Digital asset securities.
(d) Information required.
(1) In general.
(2) Transactional reporting.
(i) Required information.
(A) General rule for sales described in paragraph (a)(9)(i) of this section.
(B) Required information for digital asset transactions.
(C) Exception for certain sales effected by processors of digital asset payments.
(D) Acquisition information for sales of certain digital assets.
(ii) Specific identification of specified securities.
(A) In general.
(B) Identification of digital assets sold, disposed of, or transferred.
(1) No identification of units by customer.
(2) Adequate Identification of units by customer.
(3) Special rule for the identification of certain units withheld from a transaction.
(4) Customer-provided acquisition information for digital assets.
(iii) Penalty relief for reporting information not subject to reporting.
(A) Noncovered securities.
(B) Gross proceeds from digital assets sold before applicability date.
(iv) Information from other parties and other accounts.
(A) Transfer and issuer statements.
(v) Failure to receive a complete transfer statement for securities.
(vi) Reporting by other parties after a sale of securities.
(A) Transfer statements.
(B) Issuer statements.
(C) Exception.
(vii) Examples.
(3) Sales between interest payment dates.
(4) Sale date.
(i) In general.
(ii) Special rules for digital asset sales.
(5) Gross proceeds.
(i) In general.
(ii) Sales of digital assets.
(A) Determining gross proceeds.
(1) Determining fair market value.
(2) Consideration value not readily ascertainable.
(3) Reasonable valuation method for digital assets.
(B) Digital asset data aggregator.
(iii) Digital asset transactions effected by processors of digital asset payments.
(iv) Definition and allocation of digital asset transaction costs.
(A) Definition.
(B) General allocation rule.
(C) Special rule for allocation of certain cascading digital asset transaction costs.
(v) Examples.
(6) Adjusted basis.
(i) In general.
(ii) Initial basis.
(A) Cost basis for specified securities acquired for cash.
(B) Basis of transferred securities.
(1) In general.
(2) Securities acquired by gift.
(C) Digital assets acquired in exchange for property.
(1) In general.
(2) Allocation of digital asset transaction costs.
(iii) Adjustments for wash sales.
(A) Securities in the same account or wallet.
(1) In general.
(2) Special rules for covered securities that are also digital assets.
(B) Covered securities in different accounts or wallets.
(C) Effect of election under section 475(f)(1).
(D) Reporting at or near the time of sale.
(iv) Certain adjustments not taken into account.
(v) Average basis method adjustments.
(vi) Regulated investment company and real estate investment trust adjustments.
(vii) Treatment of de minimis errors.
(viii) Examples.
(ix) Applicability date.
(x) Examples.
(7) Long-term or short-term gain or loss.
(i) In general.
(ii) Adjustments for wash sales.
(A) Securities in the same account or wallet.
(1) In general.
(2) Special rules for covered securities that are also digital assets.
(B) Covered securities in different accounts or wallets.
(C) Effect of election under section 475(f)(1).
(D) Reporting at or near the time of sale.
(iii) Constructive sale and mark-to-market adjustments.
(iv) Regulated investment company and real estate investment trust adjustments.
(v) No adjustments for hedging transactions or offsetting positions.
(8) Conversion into United States dollars of amounts paid or received in foreign currency.
(i) Conversion rules.
(ii) Effect of identification under §1.988-5(a), (b), or (c) when the taxpayer effects a sale and a hedge through the same broker.
(iii) Example.
(9) Coordination with the reporting rules for widely held fixed investment trusts under §1.671-5.
(10) Optional reporting methods for qualifying stablecoins and specified nonfungible tokens.
(i) Optional reporting method for qualifying stablecoins.
(A) In general.
(B) Aggregate reporting method for designated sales of qualifying stablecoins.
(C) Designated sale of a qualifying stablecoin.
(D) Examples.
(ii) Qualifying stablecoin.
(A) Designed to track certain other currencies.
(B) Stabilization mechanism.
(C) Accepted as payment.
(D) Examples.
(iii) Optional reporting method for specified nonfungible tokens.
(A) In general.
(B) Reporting method for specified nonfungible tokens.
(C) Examples.
(iv) Specified nonfungible token.
(A) Indivisible.
(B) Unique.
(C) Excluded property.
(D) Examples.
(v) Joint accounts.
(11) Collection and retention of additional information with respect to the sale of a digital asset.
(e) Reporting of barter exchanges.
(1) Requirement of reporting.
(2) Exchanges required to be reported.
(i) In general.
(ii) Exemption.
(iii) Coordination rules for exchanges of digital assets made through barter exchanges.
(f) Information required.
(1) In general.
(2) Transactional reporting.
(i) In general.
(ii) Exception for corporate member or client.
(iii) Definition.
(3) Exchange date.
(4) Amount received.
(5) Meaning of terms.
(6) Reporting period.
(g) Exempt foreign persons.
(1) Brokers.
(2) Barter exchanges.
(3) Applicable rules.
(i) Joint owners.
(ii) Special rules for determining who the customer is.
(iii) Place of effecting sale.
(A) Sale outside the United States.
(B) Sale inside the United States.
(iv) Special rules where the customer is a foreign intermediary or certain U.S. branches.
(4) Rules for sales of digital assets.
(i) Definitions.
(A) U.S. digital asset broker.
(B) [Reserved]
(ii) Rules for U.S. digital asset brokers.
(A) Place of effecting sale.
(B) Determination of foreign status.
(iii) Rules for CFC digital asset brokers not conducting activities as money services businesses.
(iv) Rules for non-U.S. digital asset brokers not conducting activities as money services businesses.
(A) [Reserved]
(B) Sale treated as effected at an office inside the United States.
(1) [Reserved]
(2) U.S. indicia.
(C) Consequences of treatment as sale effected at an office inside the United States.
(v) [Reserved]
(vi) Rules applicable to brokers that obtain or are required to obtain documentation for a customer and presumption rules.
(A) In general.
(1) Documentation of foreign status.
(2) Presumption rules.
(i) In general.
(ii) Presumption rule specific to U.S. digital asset brokers.
(iii) [Reserved]
(3) Grace period to collect valid documentation in the case of indicia of a foreign customer.
(4) Blocked income.
(B) Reliance on beneficial ownership withholding certificates to determine foreign status.
(1) Collection of information other than U.S. place of birth.
(i) In general.
(ii) [Reserved]
(2) Collection of information showing U.S. place of birth.
(C) [Reserved]
(D) Joint owners.
(E) Special rules for customer that is a foreign intermediary, a flow-through entity, or certain U.S. branches.
(1) Foreign intermediaries in general.
(i) Presumption rule specific to U.S. digital asset brokers.
(ii) [Reserved]
(2) Foreign flow-through entities.
(3) U.S. branches that are not beneficial owners.
(F) Transition rule for obtaining documentation to treat a customer as an exempt foreign person.
(vii) Barter exchanges.
(5) Examples.
(h) Identity of customer.
(1) In general.
(2) Examples.
(i) [Reserved]
(j) Time and place for filing; cross-references to penalty and magnetic media filing requirements.
(k) Requirement and time for furnishing statement; cross-reference to penalty.
(1) General requirements.
(2) Time for furnishing statements.
(3) Consolidated reporting.
(4) Cross-reference to penalty.
(l) Use of magnetic media or electronic form.
(m) Additional rules for option transactions.
(1) In general.
(2) Scope.
(i) In general.
(ii) Delayed effective date for certain options.
(iii) Compensatory option.
(3) Option subject to section 1256.
(4) Option not subject to section 1256.
(i) Physical settlement.
(ii) Cash settlement.
(iii) Rules for warrants and stock rights acquired in a section 305 distribution.
(iv) Examples.
(5) Multiple options documented in a single contract.
(6) Determination of index status.
(n) Reporting for debt instrument transactions.
(1) In general.
(2) Debt instruments subject to January 1, 2014, reporting.
(i) In general.
(ii) Exceptions.
(iii) Remote or incidental.
(iv) Penalty rate.
(3) Debt instruments subject to January 1, 2016, reporting.
(4) Holder elections.
(i) Election to amortize bond premium.
(ii) Election to currently include accrued market discount.
(iii) Election to accrue market discount based on a constant yield.
(iv) Election to treat all interest as OID.
(v) Election to translate interest income and expense at the spot rate.
(5) Broker assumptions and customer notice to brokers.
(i) Broker assumptions if the customer does not notify the broker.
(ii) Effect of customer notification of an election or revocation.
(A) Election to amortize bond premium.
(B) Other debt elections.
(iii) Electronic notification.
(6) Reporting of accrued market discount.
(i) Sale.
(ii) Current inclusion election.
(7) Adjusted basis.
(i) Original issue discount.
(ii) Amortizable bond premium.
(A) Taxable bond.
(B) Tax-exempt bonds.
(iii) Acquisition premium.
(iv) Market discount.
(v) Principal and certain other payments.
(8) Accrual period.
(9) Premium on convertible bond.
(10) Effect of broker assumptions on customer.
(11) Additional rules for certain holder elections.
(i) In general.
(A) Election to treat all interest as OID.
(B) Election to accrue market discount based on a constant yield.
(ii) [Reserved]
(12) Certain debt instruments treated as noncovered securities.
(i) In general.
(ii) Effective/applicability date.
(o) [Reserved]
(p) Electronic filing.
(q) Applicability dates.
(r) Cross-references.
[Added by T.D. 10000, 89 FR 56480-56583, July 9, 2024.]
