The IRS on Thursday extended for an additional year its waiver of penalties on brokers who haven’t complied with regulations that require backup withholding of taxes on digital-asset transactions.
The transitional relief means that brokers won’t face liability or penalties for failure to pay backup withholding tax with respect to certain sales of digital assets for transactions performed between now and the end of 2026, the IRS said in a notice (Notice 2025-33). Previously the relief had extended only through 2025.
The relief applies to regulations that the IRS issued last year that require brokers to report digital ...
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