IRS Unveils New Reporting Requirements for Digital Assets in 2025

The IRS has introduced several key changes to its crypto reporting rules for the 2025 tax year. One of the most significant updates is the introduction of Form 1099-DA, which will be used by centralized exchanges and hosted wallet providers to report gross proceeds from sales and exchanges.

This new form will provide a formal paper trail that matches IRS records, reducing the likelihood of 'missing' transactions on tax returns. It also forces a higher level of accountability for major US-based exchanges.

However, it's essential to note that not all international or decentralized platforms will issue this form, leading to potential reporting gaps.