Compliance
Compliance Alerts: Brokers, Electronic Statements & Digital Assets Under U.S. IRS Proposed Rules
Recent IRS proposed regulations and notices tighten rules for digital asset reporting and electronic furnishing of payee statements—critical for brokers, platforms, and taxpayers to track.
By NomadicTax Research Team • 5-8 min read • April 18, 2026
## What’s Changing for Brokers & Digital Assets
The IRS in **Bulletin 2026-13** issued proposed regulations (REG-105064-25) that would allow brokers to furnish Form 1099-DA statements electronically rather than on paper—**if** the customer consents. This reflects a push to modernize reporting of digital asset proceeds.([irs.gov](https://www.irs.gov/irb/2026-13_IRB?utm_source=openai))
Also in the same bulletin is **Notice 2026-4**, which seeks comments on modifying electronic furnishing requirements beyond brokers—potentially expanding similar rules to financial institutions and those who issue payee statements generally.([irs.gov](https://www.irs.gov/irb/2026-13_IRB?utm_source=openai))
## Who Is Affected?
* **Brokers and crypto platforms** dealing in digital assets.
* **Large financial institutions** that issue any reporting statements to individuals (dividends, interest, royalties). If requirements expand, many more entities will need systems to support electronic forms.
* **Customers/users** who must provide explicit consent to receive statements electronically—but also those who may still opt for paper copies.
## Key Compliance Actions to Take Now
1. **Review your current statement issuance processes**, especially for digital asset proceeds Forms 1099-DA, to ensure they're capable of handling electronic issuance.
2. **Assess consent procedures**: ensure your platform or broker obtains valid consent from users for electronic statements, retaining necessary documentation.
3. **Audit your technology & security protocols**, as electronic reporting mandates may require strong data protection, as digital delivery increases liability for data breaches.
4. **Train staff or outsource expertise** in interpreting the proposed regulation once finalized, especially for entities dealing with broad payee types beyond digital assets.
## Practical Example
"CryptoBroker LLC" currently sends paper 1099-DA forms to 10,000 users. Under proposed rule change, they could switch to email or dashboard notification for those who opt-in. This reduces printing & postage costs, speeds delivery, but requires capturing valid digital consent and securing the delivery channel.
## Impacts & Timeline
These rules are **proposed**, not yet law. Comments are being requested via the regulations process. Once finalized, entities must align issuance and electronic consent policies accordingly. Watch for Federal Register postings and transition periods. Keeping up helps avoid late-adopter penalties.