Notably, the IRS’s updated crypto broker rules also affect non-domiciled taxpayers — those living outside the US but subject to IRS reporting — by mandating detailed cost basis tracking for each account and specific identification of digital asset sales on Form 1099-DA, regardless of where they reside. For example, a US citizen in Europe or a foreign national with US-based crypto income must now maintain precise records of purchase dates and costs per wallet, facing increased compliance efforts and potential tax obligations on US-sourced gains.
How Form 1099-DA shifts crypto reporting On Jan.10, 2025, the IRS released the final version of Form 1099-DA, titled “Digital Asset Proceeds From Broker Transactions.” Brokers have been instructed to use this form to report specific digital asset transactions occurring from 2025 onward. Herein are the key highlights of the new Form 1099-DA and its implications:Transition rule for tokenized securitiesDigital assets previously reported under Form 1099-B, such as tokenized securities, must now shift to Form 1099-DA.
The new crypto tax form for 2025 Form 1099-DA, titled “Digital Asset Proceeds from Broker Transactions,” is a new tax form introduced by the IRS to standardize the reporting of digital asset transactions, such as those involving cryptocurrencies.It was released on Dec.5, 2024.
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Author / Journalist: Cointelegraph by Dilip Kumar Patairya
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