On August 10, 2021, the U.S. Senate passed the USD 1 trillion infrastructure bill, known formally as the Infrastructure Investment and Jobs Act (Infrastructure Bill). The Infrastructure Bill includes provisions for approximately USD 550 billion in new federal spending over 10 years on various transportation, broadband, utilities and other infrastructure projects.
Various revenue raising provisions are earmarked to offset the additional spending. Among those revenue raising provisions, the Infrastructure Bill contemplates that USD 28 billion in income tax attributable to the disposition of digital assets will be collected over 10 years. The Infrastructure Bill anticipates generating this revenue by facilitating compliance with digital asset users’ tax payment obligations by imposing reporting requirements on ‘‘brokers’’ of ‘‘digital asset’’ transfers. Digital assets for purposes of these amendments is meant to include cryptocurrencies.
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* Article was first published in the Tax Management Memorandum
Author
David Zaslowsky
David Zaslowsky is partner in the Litigation Department of Baker McKenzie's New York office. He helps companies solve complex commercial disputes in arbitration and litigation, especially those involving cross-border issues and Section 1782 discovery. David has a degree in computer science and, as a result, has worked on numerous technical-related disputes, including, most recently, those involving blockchain. He is the editor of the Firm's blockchain blog and co-editor of the firm's International Litigation & Arbitration Newsletter. David has been included for a number of years in the Chambers USA Guide and Chambers Global Guide for his expertise in international arbitration. He also sits as an arbitrator and is on the roster of arbitrators for a number of arbitral institutions. David sits on the Board and chairs the governance committee of the New York International Arbitration Center, and is a founding member of the International Arbitration Club of New York. As detailed below, for over 30 years, he has written and spoken often on the subjects of arbitration and international litigation.
