The new rules would require cryptocurrency brokers to report information on digital asset sales and exchanges to the Internal Revenue Services (IRS) and taxpayers, my colleague Taylor Giorno reported.
“This is part of a broader effort at Treasury to close the tax gap, address the tax evasion risks posed by digital assets, and help ensure that everyone plays by the same set of rules,” the Treasury Department said in a statement.
A provision in the 2021 Infrastructure Investment and Jobs Act required additional tax reporting requirements for digital asset brokers, as well as clarification on the types of firms that qualify as crypto brokers.
Under the proposed rule, the term “broker” includes digital asset trading platforms, payment processors and certain wallet providers.
Crypto brokers would be required to provide a new Form 1099-DA to the IRS and digital asset holders to assist with tax preparation starting in 2026 — covering 2025 sales and exchanges.
Read more about the proposal and reactions to it in a full report at TheHill.com.
