The IRS (Internal Revenue Service) is the agency responsible for collecting U.S. federal taxes and enforcing compliance with US tax laws.
On April 19, The IRS released the first look at Form 1009-DA (Digital Assets Proceed from Broker Transaction). This form will enhance agencies’ measures to boost crypto tax reporting, which aligns with the regulations proposed last year. Let’s figure out more about this form.
2025 Form 1009-DA
The IRS has only revealed the outlook of the form and how it will look when reporting taxes for crypto or any digital asset on the IRS official website. Regulations mentioned in the proposal would require brokers to submit customers’ sales and exchanges of digital cryptocurrency assets.
Moreover, the form will be received by those who have taken interest at any time duration in exchange, sold, or disposed of a financial interest in any digital assets. Then, they will be asked to check the “Yes” box. Examples of digital assets that must be reported include cryptocurrencies, stablecoins, and non-fungible tokens.
The form must be filled out on or after January 1, 2025. These will include regulators, brokers, trading exchanges, and wallet providers.
The instructions on the form state, “Brokers must report proceeds from (and in some cases, basis for) digital asset dispositions to you and the IRS on Form 1099-DA. You may be required to recognize gain from these dispositions of digital assets. Reporting is also required when your broker knows or has reason to know that a corporation in which you own a digital asset that is also stock has had a reportable change in control or capital structure. You may be required to recognize gain from the receipt of cash, services, digital assets, or other property exchanged for a digital asset that is also the corporation’s stock.”
There are 18 boxes to be filled by the recipient. The boxes are divided into subcategories. According to the IRS, a digital asset is “any digital representations of value that are recorded on a cryptographically secured distributed ledger or any similar technology.”
Also, “If a particular asset has the characteristics of a digital asset, it will be treated as a digital asset for federal income tax purposes.”
The form would ask the recipient to provide TIN (Taxpayer number), account number, address, gross gains or loss, and more described in the form. Some individuals proposed that the IRS should differentiate more between centralized and decentralized exchanges to determine better who qualifies as a broker.
Final Verdict
As it exists now, it could lead to higher overhead for trading platforms, which must report all user transactions. However, this is not the final version of the form. Anyone can submit their responses or suggestions online.
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