- IRS mandates Form 1099-DA for crypto asset sales.
- Introduced for the 2025 trading year, filed in 2026.
- Changes impact investor tax reporting; experts urge preparation.
As 2026 looms, U.S. crypto investors brace for stricter tax regulations starting in 2025, fundamentally altering tax reporting with the new Form 1099-DA documenting crypto transactions.
This regulatory shift aims to standardize reporting and prevent tax discrepancies, impacting investors using multiple platforms, and necessitating proactive record-keeping and early planning.
IRS Mandates Broker Reporting for Crypto Sales in 2025
The IRS has introduced Form 1099-DA to regulate U.S. crypto tax reporting requirements. This change impacts centralized exchanges and other brokers, compelling them to report crypto sales starting in 2025.
Under Form 1099-DA, brokers will need to track and report gross proceeds from crypto sales. However, cost basis inclusion is voluntary in 2025 but becomes mandatory in 2026. As Acuity Scheduling notes, preparation is key, “Tax professionals can prepare now to assist their clients with reporting proceeds from certain digital asset transactions.”
Industry professionals highlight concerns about the complexity of these changes. There’s a need for proactive planning and close collaboration with experienced crypto tax professionals to navigate the new requirements effectively.
Crypto Community Anticipates Compliance Challenges and Benefits
Did you know? In crypto history, Form 1099-DA marks a clear shift from self-reporting, resembling the financial sector’s solid data-driven compliance model.
Ethereum (ETH) trades at $2,979.50, with a market cap of $359.61 billion. Its volume hit $18.87 billion, dropping 27.53% in 24-hour trading. ETH showed a 1.54% rise in 24 hours but declined 32.12% over 90 days, per CoinMarketCap data.
Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 01:48 UTC on December 31, 2025. Source: CoinMarketCapThe Coincu research team suggests enhanced crypto regulation may lead to more transparent financial reporting. This could potentially attract institutional investors, leading to market stability and growth. Experts foresee long-term benefits outweighing the initial compliance challenges. Enhanced crypto regulation may lead to more transparent financial reporting.
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Source: https://coincu.com/news/irs-form-1099-da-crypto-reporting/
