CandleFocus

New year, new tax form 

Author: Content Editor
The IRS has introduced a new 1099-DA form, which will come into effect on January 1, 2026. Brokers will now be required to keep track of new information. The term "brokers" caused controversy in 2023, but the IRS has since removed the section on "broker type," indicating that they need more time to issue rules around DeFi actors. Beginning in 2025, custodial brokers like Coinbase will have to report gross proceeds, and in 2026, they will have to report cost basis for certain transactions. Decentralized exchanges and NFT marketplaces are not exempt and will need to rethink data collection to meet reporting requirements. Accountants will need to adjust to the new 1099-DA form, as it may not automatically include cost basis information. The IRS hopes the new system will educate taxpayers about taxable transactions and simplify compliance.

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