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After several drafts and 44,000 comments, the IRS has a new one 1099-DA The form is here.
Or it will be January 1, 2026, at least - but starting in 2025, brokers will have to keep track of some new information.
You may remember that the term "intermediaries" — and how tax regulators would define them — caused quite a stir in 2023. Previous drafts of Form 1099-DA included a section to define "type of intermediary," but this has since been included. It has been removed.
In doing so, the IRS has essentially tracked down this issue: they know they will have to issue rules about DeFi actors eventually, but they need more time.
Starting in 2025, Custodial Brokers will have to report gross proceeds, and then in 2026, they will have to report the cost basis of certain transactions. These players are exchanges (such as Coinbase) that operate more or less like traditional stock brokers; They hold assets on behalf of clients and provide a trading platform.
Decentralized exchanges and NFT marketplaces are not exempt, but will likely have to rethink how they collect data in 2025 in order to meet reporting requirements.
For accountants who work with clients holding cryptocurrencies, Form 1099-DA will be an adjustment, IRS officials said in a recent report. Webinars. Taxpayers who received Forms 1099-DA will have details of their transaction history for the past year, but the custodial broker may not automatically calculate and enter cost basis information.
“When you get a 1099-DA, and it just has gross returns, hopefully you know the next questions to ask your clients so they can fill out that information,” Seth Wilkes, executive director of digital asset strategy and development at the IRS, said.
The hope is that the new system will help educate taxpayers about taxable transactions and make compliance easier. Fingers crossed that this is a smooth transition, but we don't envy you, CPAs.
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