Why It Matters
The IRS has issued proposed regulations as of March 2026 allowing digital asset brokers to provide Form 1099-DA statements to customers electronically for transactions beginning January 1, 2027. (irs.gov) Currently, brokers must send paper versions to those who haven’t consented to electronic materials. The proposed rules eliminate that requirement if certain notice, consent, and access requirements are met. This is relevant for anyone dealing in digital assets—cryptocurrencies, NFTs, stablecoins, etc.
Key Requirements Under the Proposal
- Brokers will need clear consent from customers to deliver 1099-DA forms electronically.
- Must provide notice that the document has been furnished electronically and ensure ongoing access to it.
- Even under the new rules, customers not consenting must still receive paper forms. (irs.gov)
What Digital Asset Brokers Should Do Now
- Review your customer consent processes. Consider building systems to track documented consent electronically.
- Ensure secure, reliable electronic delivery systems are in place. Remote storage and user portals may be involved.
- Begin estimating cost savings vs compliance costs of maintaining dual systems during transition.
- Stay up to date: because these are proposed rules, final versions could change. Public comments are part of the process.
Example Scenario
A crypto exchange sends 10,000 Form 1099-DA statements annually. Under the proposal, if they receive customer consent and meet notice requirements, they can move entirely to electronic delivery beginning 2027—saving postage, paper, and handling costs. For customers refusing or not contacted, paper remains in place.
Risks & Considerations
- Confirm whether the final regulations include penalties for noncompliance or negative consequences if access is not properly managed.
- Ensure data security and customer privacy responsibilities are upheld.
Global Nomad / Expat Angle
If you're abroad holding crypto through U.S.-based brokers, getting your electronic 1099-DA simplifies accessing documents needed for foreign filings or U.S. State-level requirements. Keep records, whether delivered digitally or physically.
Take-Home Summary
If you’re a broker or active digital asset user, this development can reduce administrative burden and help you stay complaint with disclosure obligations. But you’ll need to plan carefully—set up consent systems, electronic delivery, and stay tuned for final regs. Dates: begin using for statements for transaction after Jan 1, 2027, but rules are being finalized now.