The United States Internal Revenue Service has updated the draft of its crypto taxation form 1099-DA for crypto brokerage accounts.
“As a refresher, this is the form that ‘brokers' will start using in 2025 to report digital asset transactions to customers,” wrote Ji Kim, Head of Global Policy, Digital Assets and General Counsel at the Crypto Council for Innovation, on the social media platform X. “Initial review reflects that this draft form removed, among other things, wallet addresses, transaction IDs and time acquired. These are important changes.”
Form 1099-DA, which monitors “digital asset proceeds from broker transactions,” is slated to go at least partially into effect in 2025, according to its revised Aug. 8 draft.
The IRS, along with the U.S. Department of the Treasury, first proposed the crypto brokerage taxation form in August 2023. Early drafts of the form required filers to submit a digital wallet address and to note whether assets are a “non-covered security.” However, members in the crypto industry raised privacy concerns in addition to how the taxation reporting could affect the decentralized finance industry.
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MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.
