The IRS is introducing its new 1099-DA form, expected to take effect on January 1, 2026, with new reporting requirements beginning in 2025 for brokers handling crypto transactions. These custodial brokers, like traditional securities brokers, must report gross proceeds initially and, by 2026, the cost basis for specific transactions. While decentralized exchanges and NFT marketplaces are not exempt, they will need to adapt their data collection methods to comply with the new regulations. Accountants will be faced with the challenge of interpreting 1099-DA forms, which will provide detailed transaction histories but may not include cost basis calculations. IRS officials aim for this system to educate taxpayers on taxable transactions and simplify compliance. As the rollout approaches, stakeholders are hopeful for a smooth transition, acknowledging the potential hurdles for Certified Public Accountants (CPAs).

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