Digital Asset PARITY Act

(a) Study and report. Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report describing—

(1) the estimated compliance burden currently imposed on taxpayers by gain recognition requirements for small digital asset transactions, expressed in aggregate hours and dollars, and disaggregated by income level,

(2) the extent to which information reporting under section 6045 captures digital asset transactions of $200 or less, including the gap attributable to transactions conducted without a broker intermediary,

(3) the administrative and technological requirements necessary for the Internal Revenue Service to verify taxpayer eligibility for a de minimis exclusion within existing appropriations,

(4) the potential for abuse of a de minimis exclusion, including through transaction fragmentation, the use of multiple accounts or wallets, and the mischaracterization of investment dispositions as consumer transactions, and the mechanisms available to detect and deter such abuse without imposing additional taxpayer reporting burdens,

(5) the extent to which any de minimis exclusion could be implemented in a manner that maintains consistency between taxpayer reporting and third-party information reporting under section 6045,

(6) any disparities in reporting, compliance, or enforcement between custodial and non-custodial digital asset transactions that would arise from a de minimis exclusion,

(7) recommended legislative or regulatory approaches, if any, that would provide meaningful consumer relief while remaining administrable by the Internal Revenue Service within existing resources,

(8) the cost of additional resources that would enable the Internal Revenue Service to fully enforce existing laws concerning digital assets,

(9) the extent to which tax reporting, compliance, or enforcement does not meet Crypto Asset Reporting Framework (CARF) standards, with recommended legislative or regulatory approaches, if any, that would bring the United States into compliance with CARF, and

(10) the extent of tax avoidance risks associated with digital asset transactions, including through noncompliance, offshore activity, or structuring techniques, and the feasibility of establishing a voluntary disclosure program to facilitate taxpayer compliance with respect to such transactions.

(b) Interim guidance. Not later than 180 days after the date of enactment of this Act, the Secretary shall issue guidance identifying categories of digital asset transactions for which relief from gain or loss recognition may be provided under existing authority, including where—

(1) compliance burdens are disproportionate relative to potential tax liability, and

(2) such relief can be administered without undermining information reporting or return matching.

(c) Sense of Congress. It is the sense of Congress that—

(1) taxpayers should not be subject to undue compliance burdens for low-value digital asset transactions undertaken for personal consumption,

(2) any de minimis exclusion should be designed to provide meaningful relief to users while maintaining the integrity of the Federal tax system, and

(3) such relief should be implemented only in a manner that is administrable within existing Internal Revenue Service resources.

(d) Rule of construction. Nothing in this section shall be construed to—

(1) create or imply the existence of a de minimis exclusion for digital asset transactions, or

(2) provide independent authority to the Secretary to implement such an exclusion except to the extent otherwise authorized under existing law.

(e) Secretary. For purposes of this section, the term Secretary means the Secretary of the Treasury or the Secretary’s delegate.