One of the biggest changes for the 2025 tax year is the IRS requirement that brokers and exchanges issue a new form called Form 1099-DA (Digital Assets) to report gross proceeds from crypto sales and exchanges.
This form must be issued for transactions occurring in tax year 2025 and helps the IRS receive transaction data directly from platforms you use. This means the IRS will have more data to match against your tax return, so accurate reporting is critical.
Additionally, starting in 2026, exchanges will also be required to report cost-basis information on Form 1099-DA, helping taxpayers and the IRS determine gains more precisely.
These changes reflect a broader push: regulators worldwide are clarifying digital asset policy, increasing oversight, and improving transparency for digital asset transactions.
Another area regulators are watching closely is staking and treatment of digital assets held in trust structures. The IRS recently issued guidance creating “safe harbor” provisions for certain exchange-traded products (ETPs) that hold staked digital assets, which affects how these transactions might be classified and reported.
Why These Updates Matter to You
These regulatory changes affect how tax professionals and software must interpret and report your cryptocurrency activity — including:
- What counts as a taxable event
- How gains and losses are calculated
- What information must be included on your tax forms
- How exchanges communicate your transaction history to tax agencies
Without accurate tracking and reporting, you could underreport gains or miss deductions — increasing your risk for penalties and audits.
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