IRS Releases Updated Form 1099-DA

The US Internal Revenue Service has posted an updated draft of Form 1099-DA. Beginning in the calendar year 2025, brokers and taxpayers will use this form to report certain sale and exchange transactions of digital assets. Brokers will send these forms to taxpayers in early 2026.

The IRS released a previous version of the form for public comment in April. That version included spaces for taxpayers' digital wallet addresses and transaction IDs.

The IRS also wants to know the type of brokers used in digital asset transactions. The updated version removes all of these details.

The Chamber of Digital Commerce, the world's largest blockchain trade association, noted these changes. In June, as reported by DL News, they submitted feedback to the IRS in the form of a three-page letter.

The letter expressed concern about the form's request for sensitive information, such as transaction IDs and digital asset addresses. The Chamber maintained that such information should not be sought unless there were suspicions of criminal activity.

"This new form will provide more clarity for taxpayers and give them another tool to help them accurately report their digital assets transactions," said IRS Commissioner Danny Werfel in a news release.

The IRS has invited the public to submit comments on the latest draft of Form 1099-DA for 30 days. While the IRS stated that it could not respond to each comment due to the high volume, it assured that all submissions would be reviewed.

In June, the US Treasury completed new rules requiring custodial crypto brokers, including exchanges and payment processors, to report sales and trades of digital assets to the IRS.

This move aims to curb crypto tax evasion, according to DL News. The rules do not include reporting requirements for decentralized or non-custodial brokers that do not take possession of digital assets. The IRS said these will be covered by different regulations.