2024

United

The United States Internal Revenue Service (IRS) has released an updated draft of Form 1099-DA, which will be used by taxpayers to report their digital asset transactions, starting in 2026.&nbsp;
This <a href="https://www.irs.gov/newsroom/irs-updates-draft-version-of-form-1099-da-digital-asset-proceeds-from-broker-transactions-requests-comments-on-form-planned-for-2025" target="_blank" rel="noopener noreferrer nofollow">new version</a>, shared on August 8, has been modified to simplify the reporting process compared to the earlier draft released in April.
The updated form removes some details that were previously required, making it less complicated for taxpayers. For example, taxpayers will no longer need to report the exact time a transaction occurred—only the date.&nbsp;
Additionally, the revised form no longer asks for information about the “broker type” involved in the transaction or requires the reporting of wallet addresses and transaction IDs.
According to IRS Commissioner Danny Werfel, the updated form 1099-DA is designed to help taxpayers more accurately report their digital asset transactions. This change is part of the IRS’s effort to keep up with the growing use of digital assets and ensure people comply with tax laws.
Attorney Drew Hinkes from K&amp;L Gates is quite pleased with the changes, as he described the new form as “massively improved” and “less burdensome,” noting that it requires less data reporting than the previous version.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 IRS just dropped its updated draft 1099-DA form that will be used by “brokers” with obligations to report digital asset transactions in 2025. TLDR; This ver is massively improved / less burdensome and requires considerably less data reporting. <a href="https://t.co/IQlENNaSAv" target="_blank" rel="noopener noreferrer nofollow">https://t.co/IQlENNaSAv</a>— Drew Hinkes (@propelforward) <a href="https://twitter.com/propelforward/status/1821941673426878501?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 9, 2024</a>
 </blockquote>
 </div>
</figure>
Ji Kim, Chief Legal and Policy Officer for the Crypto Council for Innovation, agreed, saying the changes are what the industry has been asking for.
The IRS is currently seeking public feedback on the draft form, allowing people to submit comments over the next 30 days. This simplified form is expected to make it easier for people to report their digital asset transactions as the IRS continues to update its approach to the evolving digital economy.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/08/09/cftc-awards-1m-to-crypto-whistleblower/" rel="noopener noreferrer nofollow">CFTC Awards $1M to Crypto Whistleblower</a>
</blockquote>

IRS Updates Crypto Tax Reporting Form for 2026

The Crypto Times

Other articles published on Aug 10, 2024

Top New Cryptocurrency to Buy Over Pepe (PEPE) in Summer 2024

Crypto Exchanges Flood Turkey with License Applications amid New Regulations

Shytoshi Kusama Makes Major SHIB Superiority Statement Over DOGE

Is It Too Late To Buy KAT? KARAT Price Soars 3% And This Base Meme Coin Could Explode Next

Ripple CLO Calls on Kamala Harris to Intervene Against SEC Actions

Former SEC Official Calls Morgan Stanley’s Bitcoin Move a ‘Death Wish’

Join our free newsletter for daily crypto updates!