TechFlow news, according to CoinDesk, the U.S. Internal Revenue Service (IRS) yesterday released an updated draft version of Form 1099-DA—the tax form used by cryptocurrency brokers and investors to report gains from certain transactions. The public has 30 days to submit comments on this version to the IRS.
Starting in 2026, cryptocurrency investors using brokers—currently referring mainly to centralized exchanges (CEXs) such as Coinbase and Kraken—will receive Form 1099-DA from these brokers to report certain cryptocurrency sales and trades to the IRS as taxable events. IRS officials said this form will bring "greater convenience and clarity" for users paying U.S. crypto taxes.
The newly released 1099-DA update is more streamlined compared to the initial draft tax form proposed by the IRS in April. Fields previously requiring investors to provide wallet addresses and transaction IDs have been removed—these had sparked privacy-related controversies when the form was first published. Additionally, reporting the exact time of transactions is no longer required; only the date needs to be provided.
