The IRS has updated its draft cryptocurrency tax return form 1099-DA for cryptocurrency brokerage accounts.
“As a refresh, this is the format that ‘brokers’ will begin using to report digital asset transactions to their clients in 2025,” Ji Kim, head of global policy, digital assets and legal counsel at the Crypto Council for Innovation, wrote on social media platform X. “Upon initial review, this draft format appears to have removed wallet addresses, transaction IDs, acquisition times, etc. These are significant changes.”
Form 1099-DA, which monitors digital asset income from brokerage transactions, is set to take effect at least partially in 2025, according to a revised draft released on August 8.
The IRS, along with the U.S. Treasury, proposed the first cryptocurrency brokerage tax return form in August 2023. An early draft of the form required filers to submit their digital wallet addresses and record whether the assets were “non-secured securities.” However, members of the cryptocurrency industry have raised privacy concerns in addition to concerns about how the tax return could affect the decentralized finance industry.
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About the Author
MK Manoylov has been a reporter for The Block since 2020, joining just before Bitcoin first broke $20,000. Since then, MK has written nearly 1,000 articles for the publication, covering all aspects of crypto news but with a penchant for NFTs, metaverse, web3 games, fundraising, crime, hacking, and crypto ecosystem stories. MK holds a graduate degree from the Science, Health, and Environment Reporting Program (SHERP) at New York University and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.