TechFlow reported on January 16 that, according to CNN, the Internal Revenue Service (IRS) announced it will implement a third-party reporting regime for cryptocurrency transactions starting in 2025. Centralized trading platforms such as Coinbase and Gemini will be required for the first time to report users' cryptocurrency transaction information to tax authorities using the newly established Form 1099-DA.
Under the rules, custodial trading platforms, digital asset wallet providers, cryptocurrency ATM operators, and digital asset payment processors must track and record users' buy and sell transactions throughout the year, submitting reports to both users and the IRS by early 2026.
The implementation timeline specifies: reporting of crypto asset cost basis (purchase price) information will begin in 2026; peer-to-peer transaction reporting for decentralized platforms (such as Uniswap, Sushiswap) is delayed until 2027, though only total transaction volumes need to be reported. Trading of newly listed spot Bitcoin ETFs will also be reported via Form 1099-B or 1099-DA, including share transactions and taxable events occurring within the fund itself.
