Crypto Industry Says Tax-Reporting Plan Hits Wrong Players (1)

The cryptocurrency industry is warning that proposed reporting requirements included in the bipartisan infrastructure deal are so broad that they could penalize some participants for failing to give the Internal Revenue Service information they don’t have.

The legislative package, which includes $550 billion in new infrastructure spending, would a requirement on cryptocurrency “brokers” to report information on transactions involving digital assets, including cost-basis data. The Joint Committee on Taxation estimates it will raise about $28 billion over a decade by prodding people to pay what they owe from those trades.

Coinbase and Kraken are among the U.S. ...