The U.S. Internal Revenue Service has released an updated draft of Form 1099-DA, which is to be used by brokers and taxpayers to report certain digital asset sales and exchange transactions that occur beginning in calendar year 2025.

These forms will be sent to taxpayers by brokers in early 2026.

In April, the IRS released an earlier version of the form for public comment. It included fields for taxpayers’ digital wallet addresses and transaction IDs, as well as the type of brokers used in digital asset transactions. These have all been removed in the updated version.

The Chamber of Digital Commerce, the world’s largest blockchain trade association, submitted feedback in the form of a three-page letter to the IRS in June. DL News reported.

The company expressed concern about the query of sensitive information such as transaction IDs and digital asset addresses, which it believes should only be requested if there is suspicion of criminal activity.

“This new form will provide taxpayers with more clarity and another tool to help them accurately report their digital asset transactions,” IRS Commissioner Danny Werfel said in a press release.

The IRS said that public comments on the latest draft of Form 1099-DA will be open for 30 days and that due to the volume, it will not be able to respond to every comment but will review all comments.

The U.S. Treasury Department adopted new rules in June requiring crypto brokers – including exchanges and payment processors – to report sales and trading of digital assets to the IRS in an effort to curb crypto tax evasion. DL News reported.

The regulations do not impose reporting requirements for decentralized or non-custodial brokers that do not take digital assets into their possession. Different rules would apply to them, the IRS said.

Crypto market drivers

• The Bitcoin price fell 0.78% to $60,552.61 today.
• Ethereum fell 2.52% to $2,624.85 today.

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