IRS Releases Draft Form 1099-DA for Reporting Digital Asset Transactions
The IRS has unveiled a preliminary version of Form 1099-DA, which is aimed at improving the reporting of cryptocurrency taxes. The form would mandate brokers to report customers' sales and exchanges of digital assets, including non-fungible tokens and virtual currencies, to the IRS. Brokers, such as digital asset trading platforms, digital asset payment processors, and certain digital asset hosted wallet providers, would be required to report sales or exchanges of digital assets on or after January 1, 2025, on the form. The proposed regulations would also require real estate reporting persons to report the disposition of digital assets paid as consideration by purchasers in real estate transactions that close on or after January 1, 2025. The draft form includes a warning not to file or rely on draft forms, as they are subject to OMB approval before official release. Comments on the draft form can be submitted online at IRS.gov/FormsComments with the message including "NTF1099DA".
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