Welcome to this week’s edition of Tax Bytes. Our team of tax lawyers is actively monitoring for federal and international tax developments and issues of note. Each week we pull together the items we deem most important to provide updates you need to know for your business.
Tax developments
Digital assets taxation developments: Senate hearing, Joint Committee analysis, and IRS priority guidance signal policy progress
In July, the White House released a report, “Strengthening American Leadership in Digital Financial Technology,” which outlined the current state of laws and regulations applicable to digital assets. The report, in part, included legislative and regulatory recommendations to provide clarity with respect to the taxation of digital assets. The release of this report has drawn increased attention to the area by Congress, the Department of the Treasury and the Internal Revenue Service.
The Senate Committee on Finance held a public hearing on October 1, 2025, regarding the taxation of digital assets, which highlighted the uncertainties faced by taxpayers who engage in digital asset transactions. The topics discussed included whether to create a de minimis exception for small digital asset transactions and changes to the information reporting requirements applicable to transfers digital assets. In preparation for the hearing, the Joint Committee on Taxation released a report, “Examining the Taxation of Digital Assets.” The report provides a comprehensive discussion of the current taxation of digital assets, including areas of uncertainty, such as whether a digital asset is properly treated as a security or a commodity.
In addition, the Department of the Treasury and the Internal Revenue Service recently released their 2025-2026 priority guidance plan. The guidance plan includes several projects related to digital assets including:
- Guidance on the tax treatment of transactions involving digital assets;
- Guidance regarding digital assets held by §301.7701-4(c) investment trusts;
- Regulations under §6045 regarding the reporting by US brokers of digital asset transactions of certain foreign persons in connection with the OECD’s Crypto Asset Reporting Framework;
- Guidance regarding electronic furnishing of information returns, including regulations under §6045 regarding electronic furnishing of payee statements regarding digital asset sales; and
- Regulations regarding information reporting of digital assets, as amended by the Infrastructure Investment and Jobs Act.
Recent Eversheds Sutherland Tax insights
Luxembourg to reform Carried Interest Tax Regime
Budget 2026 Summary
Swiss Tax – The One Pager
District Court Rules IRS Notice on ERC Laws Meets Procedural Rules
In this article published by Tax Notes Federal, Partner Hale Sheppard explores the four ERC laws, grounds on which the IRS issued Notices, specific guidance about ERC eligibility, a recent case challenging the validity of Notice 2021-20, prior situations in which taxpayers prevailed against the IRS under the Administrative Procedure Act, and various takeaways for taxpayers still engaged in ERC disputes.
[View source.]
