Key Takeaways:
- The IRS has released a revised draft of Form 1099-DA for reporting digital asset transactions, effective 2026, simplifying the process by removing specific broker and transaction details.
- Fields for wallet addresses and transaction IDs have been eliminated, which is welcomed by legal experts and industry groups as reducing the burden on taxpayers.
- Public feedback is being sought within a 30-day period after criticism of the initial version for being overly stringent.
The IRS has released a revised draft of Form 1099-DA for U.S. taxpayers to report digital asset transactions, effective in 2026.
The updated form removes the need to specify the “broker type” and the exact time of day for crypto transactions.
JUST IN: IRS lightens #crypto reporting requirements in latest tax form draft. pic.twitter.com/j3grfgohGv
— cryptothedoggy (@cryptothedoggy) August 10, 2024
Additionally, fields for wallet addresses and transaction IDs have been eliminated.
IRS Commissioner Danny Werfel highlighted that these changes aim to simplify and clarify the reporting process.
Legal experts and industry groups, like the Crypto Council for Innovation, have welcomed the updates as less burdensome.
The IRS is seeking public feedback on the draft within a 30-day period, following earlier criticism of its initial version for being overly stringent.
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