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Promote with Leviathan NewsThe U.S. Internal Revenue Service is rolling out new digital-asset reporting rules that will make this and the next few tax seasons more complex for crypto users because exchanges will report sales proceeds to the IRS before they are required to report cost basis, forcing many traders to reconstruct their own gains and losses. Under final regulations issued by the Treasury and IRS, centralized crypto “brokers” (such as major U.S. exchanges and custodial platforms) must begin filing the new Form 1099‑DA for digital asset sales and exchanges occurring on or after January 1, 2025, reporting gross proceeds from customers’ transactions to the IRS and to users. These initial 1099‑DA forms generally will not include the purchase price (cost basis), which does not have to be reported by brokers until transactions occurring on or after January 1, 2026. As a result, during the first phase of the regime taxpayers will receive official forms that show how much they sold crypto for, but not what they originally paid, leaving them responsible for assembling historical trade data across multiple platforms, wallets, and years to compute taxable capital gains and losses on Form 8949 and Schedule D. The staggered rollout, combined with gaps in coverage, is expected to cause confusion among active traders. The rules apply primarily to custodial, centralized brokers; decentralized finance (DeFi) platforms and non-custodial protocols are not currently required to issue 1099‑DA after Congress nullified earlier DeFi reporting regulations, although users must still self‑report all taxable income and disposals. The IRS treats crypto as property, so every sale, trade, or disposal is potentially taxable, and the agency has emphasized that the presence or absence of a 1099 does not change the obligation to report all digital-asset income. For 2025 and 2026, that means many taxpayers will have partial data from exchanges, incomplete or mismatched records across centralized and on‑chain activity, and increased audit risk if their own calculations do not reconcile with information the IRS receives via 1099‑DA.
AI-generated background, compiled from web sources — not editorial content.
Coindesk ·
Cbsnews ·
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Bloomberg ·
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Coindesk ·
Cbsnews ·
𝕏/@hytopia ·
Bloomberg ·
The Block ·
Cryptonews ·
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