IRS Proposes Crypto Exchanges Shift to Mandatory Electronic Tax Documents
The IRS proposes mandating electronic delivery of Form 1099-DA for crypto users, removing the option for paper forms.Summary
The US Internal Revenue Service (IRS) has proposed new rules that would mandate the electronic delivery of tax form 1099-DA to cryptocurrency exchange users, eliminating the current requirement to provide paper copies upon request. Under these proposed changes, brokers could terminate relationships with clients who refuse electronic delivery, and users would be prohibited from retroactively revoking consent for electronic forms. The IRS requires brokers to report gross proceeds from user transactions, though they are not currently required to track cost basis for the 2025 tax year. This move comes as tax compliance remains a significant barrier for many US digital asset holders, with many seeking more education on crypto tax implications.
(Source：Cointelegraph)