The US Internal Revenue Service (IRS) released an updated draft version of tax form 1099-DA for cryptocurrency brokers and investors to report certain transaction income. The public has 30 days to provide feedback to the IRS on this version. Starting in 2026, cryptocurrency investors who use brokers (currently mainly Coinbase and Kraken, among others) will receive 1099-DAs from these brokers to report certain cryptocurrency sales and trades as taxable events to the IRS. IRS officials say this form will "bring more convenience and clarity" to users who pay US cryptocurrency taxes.

The newly released 1099-DA update version is more streamlined than the tax declaration form draft proposed by the IRS in April. Items for investors to fill in wallet addresses and transaction IDs have been removed (which sparked privacy-related controversies when the form was first released), and there is no longer a requirement to fill in the time of the relevant transaction, only the date is needed.

Drew Hinkes, partner at Miami law firm K&L Gates and cryptocurrency lawyer, said that the updated form "has greatly improved, reduced the burden of reporting, and significantly reduced the amount of data required to be reported." (CoinDesk)