New draft of Form 1099-DA reflects final regulations for custodial broker reporting and includes transitional relief
The IRS today announced the release of an early draft of the updated Form 1099-DA, which is the form for brokers to report certain sale and exchange transactions of digital assets that take place beginning in calendar year 2025, along with the instructions for recipients of the form.
According to today’s IRS release—IR-2024-204 (August 9, 2024)—the new draft of Form 1099-DA reflects the final regulations for custodial broker reporting and includes the transitional relief described in Notice 2024-56, Notice 2024-57, and Revenue Procedure 2024-28. Read TaxNewsFlash
The IRS expects to post the draft instructions for filers soon. Once the draft filer instructions have been posted, a notice will be published in the Federal Register to allow for a 30-day comment period.
In the meantime, the IRS invites interested parties to provide comments on the draft form.