IRS Form 1099-DA Reporting Requirements Take Full Effect
US brokers of digital assets are now required to report gross proceeds and, from next year, cost basis on the new 1099-DA form.
US brokers of digital assets are now required to report gross proceeds from customer transactions on the new IRS Form 1099-DA. The requirement follows Treasury regulations finalised under the Infrastructure Investment and Jobs Act.
Cost basis reporting is being phased in, with additional information required for reporting years beginning next year. Non-custodial software providers, developers and validators are excluded from the definition of broker under separate rulemaking that took effect earlier this year.
Tax preparers have noted that many crypto investors are underprepared for reconciling on-chain history with new broker reports, which is expected to increase demand for specialised crypto tax software.
