IRS Unveils New Crypto Reporting Form for US Taxpayers
The IRS simplifies digital asset reporting, making it easier for taxpayers to comply with upcoming regulations.
The United States Internal Revenue Service (IRS) has introduced an updated draft of Form 1099-DA, a document aimed at helping taxpayers report digital asset transactions more efficiently starting in 2026. The revised draft, released on August 8, eliminates some of the more burdensome requirements from the previous version, such as reporting the exact time of transactions and identifying the "broker type." These changes are designed to simplify the process, making it less overwhelming for taxpayers to accurately report their crypto activities.
IRS Commissioner Danny Werfel emphasized that the updated form would offer "more clarity for taxpayers" and serve as a valuable tool in accurately reporting digital asset transactions. Legal experts and industry leaders, including K&L Gates attorney Drew Hinkes, have praised the updated form as a significant improvement, highlighting that it is "massively improved" and "less burdensome."
The IRS has also invited public feedback on the draft within the next 30 days, giving stakeholders an opportunity to voice their opinions before the form is finalized. The agency’s efforts to streamline crypto reporting are part of a broader initiative to close the tax gap by ensuring all taxable income, including from digital assets, is reported accurately.
The IRS's push to clarify and simplify crypto tax reporting comes at a crucial time as the digital asset market continues to grow and evolve. By eliminating unnecessary complexities, the IRS hopes to make compliance more straightforward, reducing the chances of taxpayers inadvertently failing to report their crypto transactions.
photo source / Blockonome
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