IRS Introduces Form 1099-DA for Digital Asset Reporting

The IRS has released an updated Form 1099-DA for reporting digital asset transactions. Starting from 2026, brokers are required to use this new design. It includes a section for tracking various financial activities, including buying and selling cryptocurrencies, NFTs, and stablecoins.

The guide outlines various categories of brokerages including kiosk operators, digital payment processors, providers of hosted wallets, and non-hosted wallet operators. These brokers are required to report their transactions using Form 1099-DA, which involves submitting copies to both the IRS and their clients. This procedure enhances verification and ensures compliance.

Among those following the established guidelines, some express approval while others voice objections. Certain individuals raise concerns over excessive control and surveillance. Additionally, challenges are brought up regarding reporting transactions in decentralized finance systems and determining the transaction costs.

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2024-04-20 01:56