The U.S. Internal Revenue Service (IRS) has unveiled what a future tax form for crypto might look like once it finalizes its much-debated rule on how crypto transactions should be reported to the federal government.
The IRS has proposed a draft Form 1099-DA that would be designed to determine taxable gain or loss when brokered digital assets change hands. The form shows that the agency will likely have an array of individual token codes that can be filled in, as well as spaces for wallet addresses and places to look up transactions on the associated blockchain.
“Brokers must report the proceeds (and in some cases the basis) from the sale of digital assets to you and the IRS on Form 1099-DA,” according to instructions included with the form, which lists the date 2025. “You may have to recognize a gain on such disposition of digital assets.”
This statement is preliminary and may still change depending on the final outcome of the tax rule proposed last year . While establishing US tax practices for Crypto is one necessary step to free investors from uncertainty and confusion, Cryptocurrency companies are nervous about how the IRS will determine the digital asset brokers that will have to comply with the new system — possibly including wallet providers. , decentralized platforms and payment systems.
This version of the form asks the applicant to check a box that describes the type of broker: kiosk operator, digital asset payment processor, hosted wallet provider, non-hosted wallet provider, or “other.”
“As expected, the appearance is similar to Form 1099-B for reporting sales of traditional financial products,” said Jessalyn Dean, vice president of tax information reporting at Ledgible, reviewing the form, which also noted that the IRS has “packaged in this form is a multitude of lines and rectangles.”
Dean pointed out references to so-called “wash sales” and that the form provides for transactions that are only recorded within Crypto . She argued that at least ONE of the blocks on nondeductible losses would require additional guidance on how it works.
Miles Fuller, TaxBit's head of government solutions, welcomed the «long-awaited» project in a post on LinkedIn.
“The form also complies with the requirements of the current draft rules that wallet addresses and transaction hashes will be provided where needed,” he wrote. “This is another moment that has received strong reactions for several different reasons.. I’m curious if that will change once the final rules are published.”
The IRS invites public comments on the draft form.. It remains unclear when the IRS will prepare a final rule, although the 2025 form suggests completion at some point this year.
Read next: New Form 1099-DA: What it means for digital asset brokers and their clients