For those in the world of cryptocurrency, the US Internal Revenue Service (IRS) has recently extended the commentary period for new tax reporting rules, originally proposed in August 2023. These ‘Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions’ rules will require brokers to adopt a new form, Form 1099-DA, to help streamline tax submissions and reduce tax evasion.
The proposed rules, which are expected to come into effect in 2026, will impact sales and exchanges conducted in 2025. Crypto community reactions have been mixed, with some criticizing the rules as confusing and misguided, while others call for active participation against the proposed regulations. Despite this, some US Senators are urging the Treasury and the IRS to implement these rules as swiftly as possible.