Proposed regulations: Electronic furnishing of payee statements regarding digital asset sales by brokers
Notice 2026-4 also requests comments on electronic furnishing of other payee statements.
The U.S. Treasury Department and IRS today released proposed regulations (REG-105064-25) that would make it easier for digital asset brokers to provide statements to customers electronically rather than by paper. In particular, the proposed regulations provide digital asset brokers who are required to furnish to their customers written statements reflecting information provided to the IRS on Form 1099-DA, Digital Asset Proceeds From Broker Transactions, with an alternative process for obtaining consent from their customers to receive these statements in an electronic format, without offering a paper delivery alternative.
The existing rules under section 6045 require brokers to obtain consent from their customers before the brokers can satisfy their furnishing obligation with an electronically furnished Form 1099-DA statement. The existing rules also require brokers to furnish Form 1099-DA statements on paper to any customer that does not consent to receiving electronically furnished statements or that withdraws a previously provided consent. The proposed regulations would provide brokers with an alternative process for obtaining consent from their customers to receive Form 1099-DA statements in an electronic format. Unlike the existing rules, the proposed regulations would generally not require brokers to furnish the Form 1099-DA statements on paper to any customer that does not consent to receiving these statements electronically but, instead, would specifically permit brokers to terminate their business relationship with these customers. Additionally, the proposed regulations would not require brokers to give their customers the ability to withdraw a previously provided consent.
The proposed regulations would apply to Form 1099-DA statements required to be furnished on or after January 1 of the calendar year immediately following the date the regulations are finalized.
Comments on the proposed regulations, and requests for a public hearing, are due by May 5, 2026.
The U.S. Treasury Department and the IRS today also issued Notice 2026-4 requesting comments on whether and how the requirements with respect to electronic furnishing of statements reflecting information provided to the IRS on Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, as well as other payee statements, should be modified. Comments are requested by May 23, 2026, although consideration will be given to comments submitted thereafter if such consideration will not delay the issuance of guidance.
Read the related IRS release—IR-2026-29 (March 5, 2026)