New IRS reporting rules for 2025 require brokers to report gross proceeds from digital asset sales. However, brokers are generally not required to report the cost basis, forcing taxpayers to calculate their own gains and losses.
An August survey by Awaken Tax of 1,000 US investors found that 21% of respondents were waiting for information from exchanges to file their returns. Additionally, one in five reported that their 1099-DA forms were incomplete or inaccurate.
Tax professionals report significant discrepancies between 1099-DA forms and actual transaction histories. One firm noted a client with over $300 000 in stablecoin trades whose exchange form showed less than $100 000 in total proceeds.
The transition has been difficult, with some exchanges, such as Kraken, reportedly sending 1099-DA forms only two weeks before the April 15 deadline. Many forms were also not provided in a machine-readable format, requiring manual entry.
Starting in 2026, brokers will be required to report the cost basis for covered digital assets. Despite this, experts note that assets transferred between different platforms may still fall outside these reporting requirements.
