IRS Unveils Updated Crypto Reporting Form for US Taxpayers
- The Internal Revenue Service (IRS) published a revised Form 1099-DA.
- According to the IRS Commissioner, the revised form will provide taxpayers more clarity.
Starting in 2026, taxpayers will be able to report digital asset transactions using an updated draft form provided by the United States Internal Revenue Service (IRS).
The Internal Revenue Service (IRS) published a revised Form 1099-DA, Digital Asset Proceeds From Broker Transactions, on August 8th. The form would enable US taxpayers to disclose cryptocurrency transactions beginning in 2025 before the April 2026 reporting date, if the tax authority approves it.
More Clarity and Streamlined
The most recent proposed 1099-DA omits a question on taxpayers broker type when it comes to digital asset transactions. This is in contrast to the April draft. It did away with the need that filers include not only the date but also the exact time of day when the transaction took place. Taxpayers were also asked not to provide their wallet addresses and transaction IDs in the document.
According to IRS Commissioner Danny Werfel, the revised form will provide taxpayers more guidance and clarity. In order to more precisely record their transactions involving digital assets. According to K&L Gates attorney Drew Hinkes, who spoke on X, the most recent Form 1099-DA was massively improved. Also is less burdensome, and required considerably less data filing.
Moreover, according to an Aug. 9 X post by Ji Kim, chief legal and policy officer at the Crypto Council for Innovation, these seem to be positive reforms that the sector and CCI pushed for.
Users were given 30 days by the IRS to provide feedback on the preliminary form. A lot of people in the sector thought the April version was too stringent since it required reporting of a lot of different things, including the timestamps of transactions.
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Read more: https://thenewscrypto.com/irs-unveils-updated-crypto-reporting-form-for-us-taxpayers/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
