As digital assets continue to gain momentum, the IRS is taking significant steps to ensure that these types of transactions— including cryptocurrencies, NFTs, stablecoins, and tokenized securities — are properly tracked and reported for tax purposes. These new regulations are designed to align digital asset reporting with the existing standards applied to traditional financial services.
Broadly speaking, the regulations require custodial brokers to file Form 1099-DA (Digital Asset Proceeds From Broker Transactions) and furnish payee statements reporting gross proceeds and, in certain circumstances, adjusted basis on sales of digital assets affected for customers.
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