IRS to Require 1099-DA Reporting of Crypto Transactions for First Time in 2025, Affecting 50M U.S. Investors

Jan 18, 2025, 08:35 PM

Starting in 2025, many cryptocurrency transactions conducted on centralized platforms such as Coinbase and Gemini will be reported to the IRS for the first time using a new 1099-DA form. While detailed cost basis reporting is set to begin in 2026, the IRS will require crypto investors to disclose trades, earnings, or even just holdings on their Form 1040. This move affects over 50 million U.S. crypto holders, marking a significant shift in tax reporting for the cryptocurrency sector. Additionally, there are discussions among industry stakeholders about the potential for a 0% capital gains tax on cryptocurrency, which some believe could position the U.S. as a more attractive market for crypto investments compared to other countries that currently offer better tax rates.