IRS Shares New Crypto Tax Form, Invites Industry Input

The new US tax form for crypto investors’ brokerage accounts has been released, and it has been significantly narrowed down from the previous version.

Crypto’s Form 1099 will bring “greater convenience and clarity” for those paying cryptocurrency taxes in the United States, according to IRS officials.

The U.S. Internal Revenue Service (IRS) has released an updated draft version of the 1099-DA, the tax form that cryptocurrency brokers and investors will use to report income from certain transactions.

Starting in 2026, crypto investors who use brokers (which for now largely means centralized crypto exchanges like Coinbase and Kraken) will receive 1099-DAs from those brokers for reporting certain crypto sales and exchanges to the IRS as taxable events.

The updated version of the 1099-DA released Friday is more streamlined than the first draft of the tax reporting form released by the IRS in April. It has removed fields where investors could enter their wallet address and transaction ID (which raised significant privacy concerns when the form was first released). It also no longer requires the time of the transaction, only the date.

The original form also included a box asking the filer to indicate what type of broker they were; options included “kiosk operator,” “digital asset payment processor,” “hosted wallet provider,” “non-hosted wallet provider,” and “other.” This box is no longer included in the updated version of the form.

Writing in X, crypto attorney Drew Hinkes, a partner at Miami-based law firm K&L Gates, wrote that the updated form is “substantially improved/less burdensome and requires significantly less data reporting.”

This draft 1099-DA comes two months after the IRS released its final regulations for crypto broker reporting requirements. The IRS said it plans to provide rules for decentralized and non-custodial brokers in a separate set of regulations later this year.

“The new Form 1099-DA will help taxpayers adapt to the complex world of digital assets,” Raj Mukherjee and Seth Wilks, directors of the IRS Office of Digital Asset Initiative, said in an emailed statement. “It complements the recently issued 6045 broker regulations and provides a means for taxpayers to report covered digital asset gains and losses beginning in tax year 2025. This is an important step in digital asset information reporting and will bring greater ease and clarity to this process.”

The public has 30 days to submit comments to the IRS on the proposed 1099-DA.