Last year, the IRS issued final regulations requiring custodial brokers to report sales and exchanges of digital assets. The regs require brokers to report certain sales that take place beginning in calendar year 2025 on Form 1099-DA, Digital Asset Proceeds From Broker Transactions. The IRS also provided transitional relief from backup withholding tax liability and associated penalties for any broker who fails to withhold and pay the backup withholding tax for any digital asset sale or exchange transaction during 2025. The IRS has extended that relief through calendar year 2026. For more information: https://bit.ly/3G38rsi. Contact us with questions on reporting digital assets to the IRS.
Our Blog 