New Cryptocurrency IRS Reporting Rules
I thought the undependent women here trading in cryptocurrency might like to be made aware of these new IRS rules. After four years of work, the IRS has finalized its cryptocurrency regulations, and crypto tax reporting now begins. Starting with the 2025 tax year, custodial crypto platforms must report taxable crypto transactions directly to the IRS. “Digital asset brokers” must handle this reporting when they take custody of the digital assets their customers sell or exchange. These brokers include - operators of centralized trading platforms such as Coinbase, Kraken, and Binance; and - hosted wallet providers (also called “custodial wallets”). Most crypto transactions run through these brokers. Brokers must file the new IRS Form 1099-DA, Digital Asset Proceeds From Broker Transactions. This form reports the following: - Customer’s name, address, and taxpayer identification number - Name and quantity of the digital asset sold - Sale date - Gross proceeds amount Brokers must file the first Forms 1099-DA for the 2025 tax year by March 31, 2026. For 2025 only, brokers must report gross proceeds from sales or other transfers. Gross proceeds represent the total amount you receive when you sell or exchange crypto, before any fees or other costs. Beginning in 2026, brokers must also report the customer’s cost basis—the original value of the crypto at acquisition plus any associated costs. With Form 1099-DA in place, you will find it easier to calculate your crypto gains and losses when you file your return. However, the IRS will know much more about your transactions.