Final regulations from the IRS require custodial brokers to report certain sale and exchange transactions of digital assets beginning in 2026 for transactions in calendar year 2025.
Later this year, the IRS will release Form 1099-DA, Digital Asset Proceeds From Broker Transactions, for custodial brokers to use.
The IRS defines custodial brokers as brokers who take possession of the digital assets their customers sell.
These brokers include operators of custodial digital asset trading platforms, certain digital asset-hosted wallet providers, digital asset kiosks and certain processors of digital asset payments.
The IRS will also require real estate professionals to report the fair market value of digital assets paid by buyers and received by sellers in real estate transactions with closing dates on or after Jan. 1, 2026. Learn more.