The U.S. Internal Revenue Service (IRS) has unveiled an updated draft of the tax form, known as 1099-DA, that cryptocurrency brokers and investors will use for reporting certain transaction proceeds.
Starting in 2026, cryptocurrency investors using brokerage services, primarily centralized exchanges like Coinbase and Kraken, will need to utilize the 1099-DA form provided by these brokers to declare specific cryptocurrency sales and exchanges as taxable events to the IRS.
The revised 1099-DA form, released this Friday, is more concise compared to the initial draft of the tax reporting form introduced in April by the IRS. Notably, it no longer includes fields for entering wallet addresses and transaction IDs, a feature that had previously sparked privacy concerns. Additionally, the form has been simplified to require only the date of transactions, omitting the time.
The original version of the form also featured a section for filers to specify their type of brokerage, with options like “kiosk operator,” “digital asset payment processor,” “hosted wallet provider,” “unhosted wallet provider,” and “other.” This section is absent in the latest version of the form.
The revised form is “greatly improved and less complicated, requiring far less data reporting,” according to crypto attorney Drew Hinkes, a partner at K&L Gates in Miami, via X.
Two months after the IRS made public its final regulations for cryptocurrency broker reporting, this latest draft of the 1099-DA has emerged. The IRS indicates that it will further develop regulations for decentralized and non-custodial brokers later this year.
“The new Form 1099-DA will assist taxpayers in navigating the complexities of digital assets,” announced IRS Office of Digital Asset Initiative Directors Raj Mukherjee and Seth Wilks via email. “It supports the 6045 broker regulations that were recently released and offers a means for taxpayers to report their relevant digital asset gains and losses starting in the tax year 2025. This marks a significant advancement in digital asset information reporting and will enhance both simplicity and clarity in the process.”
The public is given 30 days to submit comments to the IRS concerning the proposed 1099-DA.
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