NTA2415. How To Prepare Now for Crypto Reporting - With and Without Form 1099-DA

The Infrastructure Investment and Jobs Act of 2021 expanded broker reporting of IRC Section 6045 to include digital assets. This reporting will start for 2025 and final regulations were issued in June 2024. This presentation covers the highlights of the final regulations, two notices and a revenue procedure released in June that address reporting for 2025 and later changes, transitional guidance, and basis adjustments to reconcile basis tracking of the virtual currency FAQs versus basis rules included with the broker reporting regulations and new Form 1099-DA. Recordkeeping and other due diligence requirements will be a focal point including the additional time your clients and you will need to take to ensure proper reporting because not all digital asset transactions will have a 1099-DA and the forms received will need to be reconciled to taxpayer records.

Learning Objectives:

• Identify the basic approach of the digital asset reporting regulations including who is a broker, what is reported and how, and determination of amount realized and basis.
• Recognize what will be reported on Form 1099-DA and what transactions involving digital assets will not be reported on a 1099-DA and the importance of clients maintaining excellent records of all digital asset transactions.
• Identify a tax preparer's due diligence actions needed to help clients with digital asset transactions prepare a proper tax return.