"New Tax Table, New Rules!!! 1099-DA Sets a New Benchmark for Cryptocurrency Tax Compliance"
The IRS's brand new 1099-DA form has finally settled down and will officially take effect in 2026, but brokers will need to start tracking additional transaction information from 2025. This tax reform targeting digital assets will undoubtedly impact the entire cryptocurrency market ecosystem, especially decentralized exchanges (DEX) and the NFT market.
It is worth noting that the IRS's definition of 'broker' sparked significant controversy in 2023; although the relevant classification has been removed from this form, the issue has not been completely resolved. The IRS is temporarily focusing on custodial brokers, such as trading platforms like Coinbase that hold customer assets. Starting in 2025, they will need to report total income, and in 2026, they will need to report more transaction cost information.
This means more complex data organization and compliance requirements. The IRS emphasizes that taxpayers receiving the 1099-DA form should pay attention to whether it includes cost basis data and actively supplement complete transaction information. While this change aims to enhance compliance transparency.
Whether you are a participant in blockchain projects or a tax expert, this 'tax reform storm' will bring new challenges. For more information on tax compliance, follow the expert; cutting-edge insights are not to be missed!
