Key Takeaways
- IRS releases revised Form 1099-DA for reporting Bitcoin transactions.
- New form removes wallet address and transaction ID requirements.
- Public has 30 days to comment on the proposed form before it is finalized.
The U.S. Internal Revenue Service (IRS) has unveiled a revised draft of Form 1099-DA, the tax form that Bitcoin investors and brokers will use to report certain transactions starting in 2025.
This updated form has been simplified from earlier drafts, addressing some privacy concerns and reducing the amount of information required.
Changes in the form
The new 1099-DA form no longer requires taxpayers to provide wallet addresses or transaction IDs, details that sparked privacy worries in earlier versions.
The form has also removed the need to specify the time of transactions, focusing solely on the date.
Additionally, the section asking filers to identify their type of brokerage service—whether as a kiosk operator, digital asset payment processor, or others—has been eliminated.
IRS officials comment
According to IRS officials Raj Mukherjee and Seth Wilks, the form is designed to bring “ease and clarity” to the complex reporting of Bitcoin transactions. Miami-based crypto lawyer Drew Hinkes described the updated form as “massively improved” and “less burdensome,” highlighting the reduced data reporting requirements.
The IRS is seeking public input on the form over the next 30 days, as it finalizes its approach to reporting Bitcoin transactions. Additional rules for decentralized and non-custodial brokers are expected later this year.
