YEREVAN (CoinChapter.com) — The IRS has released a new draft of Form 1099-DA, intended for reporting digital asset transactions starting in 2025. This form will be used for transactions reported in April 2026. The updated draft includes several changes to make the process simpler for taxpayers.
IRS Simplifies Crypto Reporting: Key Changes in Draft Form 1099-DA for 2025
The latest draft removes the need for taxpayers to report the exact time of day a crypto transaction took place. Previously, the form required both the date and time, but now only the date is necessary. This change reduces the amount of information taxpayers need to provide.
The IRS has also removed the box that asked taxpayers to identify the “broker type” for digital asset transactions. This change addresses concerns that this requirement was too complex and not necessary for accurate reporting.
The new draft also eliminates the requirement for taxpayers to report wallet addresses and transaction IDs. These details were included in the earlier draft from April, but many felt they were too invasive and added unnecessary complexity. The updated form focuses on the essential information needed for tax reporting.
IRS’s Updated Form 1099-DA Praised by Industry Leaders for Simplified Reporting
IRS Commissioner Danny Werfel stated that the updated form provides more clarity for taxpayers. He said it would help them report their digital asset transactions accurately.
Drew Hinkes, an attorney at K&L Gates, shared his approval on X, calling the latest version of Form 1099-DA “massively improved” and “less burdensome.” He noted that the reduction in data reporting requirements was a positive change.
Ji Kim, chief legal and policy officer for the Crypto Council for Innovation (CCI), also commented on X, saying the updates were welcome changes that the CCI and the industry had advocated for.
IRS Seeks Public Feedback on New Crypto Reporting Draft, Responds to Earlier Input
The IRS is asking for public comments on the draft form within 30 days. This period allows taxpayers and industry professionals to provide input that could further refine the form before it is finalized.
Earlier in the year, the IRS released a draft of its crypto broker reporting requirements. After receiving public input, the agency made changes, including clarifying that decentralized exchanges and self-custody wallets would not be subject to the same rules as traditional brokers.
