New Form 1099-DA
The IRS has released a draft of Form 1099-DA, “Digital Asset Proceeds from Broker Transactions.” This form is designed to report income from cryptocurrency transactions.
IRS Plans to Implement Form in 2025
The IRS plans to implement Form 1099-DA in January 2025. Brokers will start issuing the form to traders in January 2026.
Information Required on Form
Form 1099-DA requires traders to provide information such as:
- Digital asset address
- Sale transaction ID
- Units of digital asset transacted
- Security status of the digital asset
Concerns from the Crypto Community
The crypto community has expressed concerns about certain aspects of Form 1099-DA, including:
- The inclusion of “unhosted wallet providers” as brokers
- The potential for exposure of unreported crypto transactions
- The threat to privacy and pseudo-anonymity in the crypto space
Feedback on Draft Form
The draft Form 1099-DA is currently open to comments. The IRS may make changes to the form based on feedback received.
