Starting on Tax Day 2026, the IRS will enforce new 1099-DA reporting requirements, obligating all Americans who sold or traded digital assets in 2025 to report these transactions. Meanwhile, the Treasury Department reports that 53 million taxpayers have already utilized exemptions introduced during the Trump administration.

Summary

  • The Form 1099-DA is now the IRS-required document for reporting digital asset transactions from 2025, with brokers obligated to send these forms; however, basis reporting will be voluntary, presenting a challenge for crypto investors.
  • Treasury reports that 53 million Americans benefited from new tax exemptions, such as the absence of taxes on tips and overtime, deductions for car loan interest, and the introduction of Trump Accounts for children’s savings, leading to an average refund increase of 11% to $3,462.
  • IRS CEO Frank Bisignano spoke to the Senate Finance Committee on Tax Day, highlighting the effective implementation of the Republican tax law while Democrats raised concerns regarding IRS data-sharing practices with ICE.

For the first time, the IRS’s 1099-DA obligations are inevitable this tax season. This new form, a streamlined version of prior drafts, requires brokers to report all digital asset transactions for the year 2025, although requirements regarding wallet addresses and transaction IDs have been removed.

Simultaneously, 53 million Americans are leveraging a fresh set of tax alterations rooted in Trump-era policies during this year’s filing season.

For transactions occurring in 2025, custodial brokers are mandated to submit Form 1099-DA disclosing gross proceeds by February 17, 2026. However, the crucial detail is that basis reporting is optional for this first year. Consequently, the majority of 1099-DA forms won’t include cost basis information, compelling taxpayers to calculate their basis to determine any gains or losses independently.

Crypto investors who mistakenly view their 1099-DA forms as comprehensive documents and fail to reconcile their records may encounter significant discrepancies when the IRS begins cross-referencing broker data. Every taxpayer is also required to answer the digital asset question on Form 1040—‘yes’ or ‘no’—regardless of whether they received a 1099-DA. Failing to provide an accurate response could result in a penalty for perjury.

For those needing to compute their own gains and losses, numerous dedicated tracking tools are accessible, especially since basis reconstruction across various exchanges, wallets, DeFi engagements, and staking activities remains the taxpayer’s responsibility this year.

A Broader Overview of Tax Day

On the broader tax front, the Treasury indicates that the 2026 filing season has broken several records regarding new exemption claims. Over 53 million filers have claimed at least one new provision from the Republican tax reforms, including 6 million who reported no taxes on tips, as well as non-taxable car loan interests, senior deductions, and the recently introduced Trump Accounts for child savings.

The average tax refund has surged to $3,462, up by 11% from last year, which was $3,116. Trump remarked on Fox Business, “People are receiving refunds of $5,000, $8,000, $11,000 that they had no idea they would get.”

Political Context

During Tax Day, IRS CEO Frank Bisignano testified before the Senate Finance Committee, where he outlined the agency’s proper implementation of the Republican tax legislation. In contrast, Democrats diverted attention to the IRS’s data-sharing agreements with ICE, raising alarms about the potential routing of confidential taxpayer information to immigration enforcement. The IRS workforce has also seen a 27% reduction over the past year due to budget cuts.

For cryptocurrency investors, the administration’s stance has implications extending beyond the current season. Starting with the tax year 2026, mandatory basis reporting will be implemented, intensifying the compliance obligations associated with 1099-DA forms moving forward.