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Form 1099-DA: Track the Key Milestones & Updates
Understand the Journey of Form 1099-DA from proposal to implementation.
Timeline
Proposal:
The Infrastructure Investment and Jobs Act (IIJA) signed by President Biden, requiring crypto exchanges and platforms to report digital asset transactions to the IRS.November 2021
Final Regulations:
The IRS announced the final regulations on reporting requirements for custodial brokers regarding digital assets.June 2024
Updated Draft:
The IRS posted an early draft of the updated Form 1099-DA, reflecting the final regulations and including transitional relief.August 9, 2024
Public Comment Period:
The IRS opened a 30-day comment period for the updated draft. August 14, 2024Updated Draft:
The US Internal Revenue Service (IRS) released draft Instructions for Form 1099-DA.September 9, 2024
Effective Date:
Form 1099-DA reporting required for transactions occurring on or after this date.January 1, 2025
Cost Basis:
Beginning on this date brokers are required to begin tracking cost-basis information on assets acquired by their customersJanuary 1, 2025
Initial Reporting:
Brokers are required to file gross-proceeds information on sale of assets in the 2025 tax year, if available they have the option of reporting cost-basis on those transactionsFebruary 2026
First Penalty Notices:
Initial notices for penalties assessed for missing or incorrect TINs on account holders assessed. Tax ID penalties are not included in the existing grace-period and should be considered prior to all filings
February 2026