TLDR
The IRS introduced a new broker reporting regime for crypto: U.S. platforms must issue Form 1099?DA starting with 2025 taxes for gross proceeds and add cost basis reporting in 2026, tightening compliance and matching.
- Centralized brokerages will send 1099?DA to users and the IRS for sales, reducing underreporting risk per a recent report. See the 1099?DA timeline in a news summary.
- Guidance for newer activities like staking remains in development according to the same report.
- Global visibility is set to widen as the U.S. reviews adopting the OECD Crypto?Asset Reporting Framework, with full enforcement targeted for 2027 per a policy update.
Deep Dive
1. 1099?DA Timeline
The key change is the phased rollout of 1099?DA for digital assets. For the 2025 tax year, brokerages report gross proceeds from crypto sales, and for 2026, they add cost basis, enabling precise gain or loss matching by the IRS. This reduces gaps that previously relied on self?reported records and inconsistent exchange data, increasing audit?match accuracy for sales across venues per a recent news summary.
Expect 1099?DA forms from U.S. brokers and keep detailed lot?level records, especially if you transfer assets between platforms where basis history can be incomplete.
2. Scope Today, Open Items
The mandate covers centralized brokerages that facilitate customer trades and custody, who will now transmit standardized information on digital asset dispositions to taxpayers and the IRS. At the same time, policymakers have not finalized comprehensive guidance for certain activities (for example, staking income nuances and ETF staking flow treatment) according to the report above.
Sales reporting becomes standardized quickly, but some income categories may still see clarifications. Track staking and similar guidance updates before filing.
3. International Data Sharing Next
Separately, the Treasury has sent rules for the OECDs Crypto?Asset Reporting Framework (CARF) for White House review, with industry coverage indicating full enforcement is aimed for 2027. CARF would require foreign exchanges to share U.S. taxpayers crypto activity with the IRS, closing offshore visibility gaps per a recent policy update.
Using non?U.S. platforms is unlikely to avoid reporting in the medium term. Align record?keeping now with a world where cross?border crypto data is routinely exchanged.
Conclusion
In short, 1099?DA brings crypto closer to traditional broker reporting: gross proceeds in 2025 and cost basis in 2026 will let the IRS match your sales more reliably. Open items like staking guidance are still being refined, and international reporting via CARF could make offshore activity visible by 2027. The practical takeaway is simple: maintain clean lot?level cost basis across venues and watch for targeted IRS updates on income categories.
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