TAX2515. The IRS Will Soon Require 1099s for Digital Assets Activity — What You Need to Know

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 2024 that address 1099-DA reporting for 2025 and later. We will discuss record keeping and other due diligence requirements, as well as the additional time you and your clients will need to take to ensure proper reporting because the forms received will need to be reconciled to taxpayer records now that not all digital asset transactions will have a 1099-DA.

Learning Objectives:

• Recognize who is a broker, what is reported, and how to reconcile the 1099-DAs to taxpayer records based on the final broker reporting regulations.
• Distinguish what will be reported on Form 1099-DA and what transactions involving digital assets will not be reported on a 1099-DA.
• Identify a tax preparer's due diligence actions needed to help clients with digital asset transactions in preparing an accurate tax return.