WASHINGTON, D.C. — The Internal Revenue Service (IRS) has unveiled an early draft of the updated Form 1099-DA. This form is designated for brokers to report sale and exchange transactions involving digital assets starting in the calendar year 2025. The forms are expected to be dispatched to taxpayers and the IRS in early 2026.
The draft, titled “Form 1099-DA, Digital Asset Proceeds From Broker Transactions,” aligns with the final regulations for custodial broker reporting. It also incorporates transitional relief as detailed in Notice 2024-56, Notice 2024-57, and Revenue Procedure 2024-28. The IRS is inviting comments on the draft through its forms and publications comments page on IRS.gov.
“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. “We know third-party reporting greatly improves compliance with the nation’s tax law. This step will also help us make sure digital assets are not used to hide taxable income, including in high-income categories, while providing taxpayers who play by the rules more information to accurately report their income.”
Digital assets have added a layer of complexity to the tax system. The IRS is committed to making improvements in this area as part of its broader efforts to transform the agency. “Digital assets greatly increase the complexity of our tax system, and the IRS continues to work to make improvements in this area as part of our larger efforts to transform the agency,” Werfel added. “We will continue working this area to help ensure the tax laws are met while working to reduce burden wherever possible to help taxpayers in this challenging area.”
As part of the development process for the final version of the form, the IRS has posted the new draft of Form 1099-DA on IRS.gov along with instructions for recipients. The draft instructions for filers are expected to be posted soon. Once available, a notice will be published in the Federal Register to initiate a 30-day comment period.
This draft form aims to enhance transparency and compliance among taxpayers dealing with digital assets, providing a structured approach for reporting transactions. The IRS encourages stakeholders to review the draft and provide feedback to ensure the form meets the needs of both the agency and taxpayers.
The introduction of Form 1099-DA reflects the IRS’s ongoing efforts to adapt to the evolving landscape of digital assets and ensure proper tax reporting and compliance.
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