The US Internal Revenue Service (IRS) has updated changes to its previous finalized crypto tax form, implementing changes that the industry was vocal about. This new version is streamlined, reducing the data required by the last iteration. With that, the privacy concerns engendered by the reporting requirements previously have been addressed. The 1099-DA form will be offered by crypto brokers to clients starting in 2026. For the most part, brokers will comprise crypto exchanges in the US, like Coinbase and Kraken. These platforms’ users must fill out the form to report eligible transactions to the IRS. The new form will make it easier for crypto users to identify what transactions constitute taxable events, simplify the reporting process, and reduce hassles overall. For instance, this
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The US Internal Revenue Service (IRS) has updated changes to its previous finalized crypto tax form, implementing changes that the industry was vocal about. This new version is streamlined, reducing the data required by the last iteration. With that, the privacy concerns engendered by the reporting requirements previously have been addressed.
The 1099-DA form will be offered by crypto brokers to clients starting in 2026. For the most part, brokers will comprise crypto exchanges in the US, like Coinbase and Kraken. These platforms’ users must fill out the form to report eligible transactions to the IRS. The new form will make it easier for crypto users to identify what transactions constitute taxable events, simplify the reporting process, and reduce hassles overall.
For instance, this form does not require users to fill in their wallet addresses and transaction IDs, removing privacy-related troubles. Furthermore, users do not have to include the time of their transactions. Instead, the new form has a section asking users to enter the dates of their transactions. Other alterations include the removal of the broker type section, which contained options like ‘broker kiosk’, “digital asset payment processor,” “hosted wallet provider,” “unhosted wallet provider,” and “other”.
This updated form comes over a month after the previous one was issued, in the last week of June. It saw changes because of the criticisms relayed by many. When announced then, it created controversy among industry participants. However, the IRS has listened to the comments and brought necessary amendments. Those wanting changes to the new form can leave feedback here. The IRS is taking comments for thirty days since the new form’s proposal.
Crypto Lawyer Drew Hinks took to X to share their opinion about the IRS’ development, “This ver is massively improved / less burdensome and requires considerably less data reporting.”