IRS Proposes Mandatory Electronic Delivery of Crypto Tax Forms

The US Internal Revenue Service (IRS) is proposing new rules that would require crypto exchanges to deliver tax forms electronically to users. The proposal removes the current option that allows users to request paper copies of Form 1099-DA, the document used to report digital asset transactions.

If adopted, the rule would take effect on January 1 of the calendar year following the publication of the final regulation.

Form 1099-DA Reporting Requirements for Crypto Brokers

Form 1099-DA is designed to document proceeds from crypto transactions conducted through brokers or centralized exchanges. Under IRS rules, brokers must report key customer details, including a user’s name, Tax Identification Number (TIN) and the gross proceeds from each transaction.For the 2025 tax year, exchanges will not be required to track the cost basis of crypto assets. Investors will remain responsible for calculating the price they originally paid for their digital assets when filing taxes.

Crypto Tax Compliance Remains a Major Issue

According to the National Crypto Association, about 55 million Americans, roughly one in five adults, hold digital assets. However, tax compliance remains a challenge. Survey data shows 10% of respondents see crypto taxes as a barrier, while 39% say they want clearer education on digital asset tax rules.

The proposal comes amid broader debates over cryptocurrency tax reporting requirements in the United States.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.