IRS updates draft of crypto reporting form for US taxpayers

Turner Wright2 hours agoIRS updates draft of crypto reporting form for US taxpayersThe latest draft form eliminated asking US taxpayers the time of day a crypto transaction occurred and identifying the “broker type.”606 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onThe United States Internal Revenue Service (IRS) has updated its draft form for taxpayers to report digital asset transactions starting in 2026. 

In an Aug. 8 notice, the IRS released a draft of Form 1099-DA, “Digital Asset Proceeds From Broker Transactions.” The form, if approved by the tax service, the form would allow US taxpayers to report crypto transactions from 2025 by the filing deadline in April 2026.

Compared to the draft released in April, the latest proposed 1099-DA removed a box asking taxpayers to identify the “broker type” for digital asset transactions. It eliminated asking filers for the precise time of day the transaction occurred rather than just the date. The draft also removed spaces for taxpayers to report wallet addresses and transaction IDs.Source: IRS

IRS Commissioner Danny Werfel said the updated form would “provide more clarity for taxpayers and give them another tool to help them accurately report their digital assets transactions.” K&L Gates attorney Drew Hinkes said on X the latest version of Form 1099-DA was “massively improved,” “less burdensome,” and required “considerably less” data reporting.

“[T]hese appear to be welcome changes that CCI and industry advocated for,” said Ji Kim, chief legal and policy officer for the Crypto Council for Innovation, in an Aug. 9 X post.

Related:US policy group proposes Bitcoin tax-free zone for digital economy growth

The IRS invited users to submit comments on the draft form within 30 days. Many in the industry criticized the April version as overly strict, requiring reporting the time of the transactions and a wide range of activities.

In June, the tax service released a final draft of its crypto broker reporting requirements, saying that decentralized exchanges and self-custody wallets would not be subject to the rules. Werfel noted at the time that the requirements were aimed at closing the tax gap by stopping filers from hiding taxable income.

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