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IRS Implemented New Crypto Tax Reporting Rules

Digital asset investors must now navigate new 1099-DA forms as federal oversight of cryptocurrency transactions expands.

Updated on Oct. 13, 2026 in Taxes

Isometric editorial illustration of a stack of metallic tokens on a concrete surface, representing digital asset reporting regulations.
The IRS has officially implemented new reporting regulations for digital assets, requiring investors to utilize 1099-DA forms for 2025 tax filings. AI Illustration. Upload story photo >

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The IRS finalized digital asset broker reporting regulations under T.D. 10000, leading to the introduction of 1099-DA forms for the 2025 tax year. This phased system officially began tracking gross proceeds for digital asset sales on January 1, 2025.

The federal government estimates the annual crypto tax gap at $50 billion. Following new regulations, brokers including Coinbase issued standardized 1099-DA forms for taxpayers by March 17, 2026.

The players

IRS

The federal agency responsible for tax administration, which collects revenue and enforces compliance through standardized reporting like the 1099-DA.

Coinbase

A major digital asset exchange that facilitates crypto trading and now provides tax documentation to assist users in meeting federal reporting obligations.

The details

Exchanges have implemented systems to report gross proceeds from sales, with cost basis reporting requirements for assets acquired on or after January 1, 2026. If specific-identification tools are unavailable, taxpayers are authorized to use their own records or standing orders to identify units sold. Under current rules, the FIFO (First-In, First-Out) method serves as the default for determining the cost basis of sold units.

Timeline

  1. July 2024: IRS finalized T.D. 10000 reporting regulations.

  2. January 1, 2025: Gross proceeds reporting phase began.

  3. March 17, 2026: Coinbase issued 1099-DA forms for the 2025 tax year.

  4. January 1, 2026: Cost basis reporting requirements began.

Money Landscape

The implementation of T.D. 10000 marks a significant shift in tax oversight that mirrors the evolution of brokerage reporting for traditional stocks. This transition moves the digital asset market away from self-reporting toward a standard supported by institutional data.

Investors should review their 1099-DA forms and personal records to ensure cost basis accuracy when filing taxes. Because FIFO is the default method for identifying units sold, consider discussing your specific tax position with a qualified tax professional if you intend to use a different accounting method.

The takeaway

The new reporting system creates a clearer trail for the IRS to track digital asset profits and losses. Keep all transaction records organized and confirm how your specific exchange handles cost basis reporting to avoid discrepancies during tax season.

Further reading

For more information on reporting digital asset sales, visit Taxes.

Source note: This article includes information reported by FinanceFeeds.

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