Illinois Proposes Nation's First Digital Assets Tax

The Illinois Department of Revenue has taken a significant step towards launching the nation's first tax on digital assets, publishing a draft rule that outlines the duties of cryptocurrency users and digital asset brokers who must collect and remit the tax.

The proposed rule, which is open for public comment until November 28th, would require digital asset users and brokers to track and report transactions starting from January 1st, 2027. The tax on these transactions has already been met with opposition from cryptocurrency trade groups, who have filed two lawsuits against the state.

The Illinois Department of Revenue is seeking feedback on matters not specifically addressed in the draft rule, including any issues that may arise from its implementation. According to David Harris, State Revenue Director, 'Given the novelty of the tax...'