This joint resolution, introduced in the House of Representatives on January 21, 2025, seeks to disapprove a rule submitted by the Internal Revenue Service (IRS) titled "Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales." The rule in question was published in the Federal Register on December 30, 2024 (89 Fed. Reg. 106928). Under the Congressional Review Act (CRA), which is codified in chapter 8 of title 5, United States Code, Congress has the authority to review and disapprove federal agency rules through a joint resolution of disapproval. If both the House and Senate pass the joint resolution and the President signs it, the rule will be nullified and cannot be reissued in substantially the same form unless authorized by a subsequent law. The specific rule targeted by this joint resolution appears to relate to reporting requirements for brokers who facilitate transactions involving digital assets, such as cryptocurrencies. The rule likely requires these brokers to report the gross proceeds from digital asset sales to the IRS. By disapproving this rule, Congress would effectively prevent the IRS from implementing and enforcing these reporting requirements.
This bill, introduced in the House of Representatives, aims to cancel a rule made by the Internal Revenue Service (IRS) about reporting the money earned from selling digital assets, like cryptocurrencies. The rule, which was announced on December 30, 2024, would have required brokers who help people buy and sell digital assets to report the total amount of money involved in these sales to the IRS. Congress has the power to review and cancel rules made by government agencies. If both the House and the Senate pass this bill, and the President signs it, the IRS rule will be canceled and cannot be put into effect. This means that the brokers would not have to report the money earned from digital asset sales to the IRS unless a new law is passed in the future that allows the IRS to make a similar rule.