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. 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:

• Review the final broker reporting regulations to identify who is a broker, what is reported and how to reconcile the 1099-DA's to taxpayer records.
• Understand 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 to prepare an accurate tax return.