The IRS has finally released the new 1099-DA after several drafts, and more than 44,000 comments.
Or it will be on Jan. 1, 2026, at least — but starting in 2025, brokers are going to have to keep track of some new information.
Perhaps you remember the term “brokers” — and how tax regulators would define them — caused quite a stir back in 2023. Earlier drafts included a separate section for identifying the “broker type,” This has been done.
This is a way that the IRS pushed the issue back. They are aware they will eventually have to make rules about DeFi agents, but more time is needed.
In 2025, “custodial brokers” They will be required to declare gross proceeds and in 2026 will also have to state the cost basis. Exchanges like Coinbase act in a similar way to traditional brokers, holding assets for clients while providing a trading platform.
The NFT and decentralized exchanges will not be exempt from the new reporting rules. However, they may have to change their data collection methods in 2025 to comply with them.
IRS officials explained in a recent webcast that 1099-DA forms will require adjustments for accountants with crypto clients. IRS officials said that 1099-DA tax forms provide information about the transactions of taxpayers for the previous year. But the custodial brokers may not calculate the cost base automatically.
“When you get that 1099-DA, and it only has gross proceeds, hopefully you will know the next questions to ask your clients to be able to fill in that information,” Seth Wilks is the executive director for digital assets strategy and development of the IRS.
It is hoped that the new system can help taxpayers understand what transactions are taxed and will make compliance simpler. The CPAs are not envious of you.
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