The IRS has released an updated draft version of Form 1099-DA, which cryptocurrency brokers will use to report digital asset transactions starting in 2025.
The new Form 1099-DA, Digital Asset Proceeds From Broker Transactions, reflects the final regulations for custodial broker reporting and includes transitional relief. The IRS hopes that the new form will improve compliance and prevent the use of digital assets to hide taxable income.
Beginning in 2026, crypto investors who use brokers — which, for now, largely means centralized crypto exchanges like Coinbase and Kraken — will receive the 1099-DA from those brokers to report certain crypto sale and exchange transactions to the IRS as taxable events.
The IRS said it expects to post the draft instructions for filers soon. Once the agency posts the draft filer instructions, it will publish a notice in the Federal Register to allow for a 30-day comment period. Learn more.