The IRS has issued Brokers guidance on how to comply with reporting rules on digital assets.
A 2021 law requires brokers to report the sales price, tax basis and other information on digital asset trades. The rules were scheduled to first take effect for digital assets acquired on or after Jan. 1, 2023, but IRS previously delayed the reporting obligation.
Proposed regs address a multitude of topics: Reportable digital assets. Brokers required to report under the rules (the definition of broker for this purpose is broad). Types of sales subject to reporting. Information to be reported to IRS and the taxpayer. Gross proceeds in digital asset transactions and much more.
Brokers will use new IRS Form 1099-DA to report this information.
Brokers have a couple of years to prepare for this. Under the proposed regs, brokers must report gross proceeds from digital asset sales taking place in 2025 or later. That means you won’t receive a 1099-DA from your broker until early 2026.
Reporting of tax basis and character of gain begins with 1099-DAs sent out in 2027.
So for now there are still being treated as stocks and bonds for tax purposes.