Compliance
Navigating IRS Proposed Rules for Digital Asset Reporting via 1099-DA
Understand the implications of new IRS proposed regulations for furnishing Form 1099-DA electronically, and how digital asset brokers and taxpayers can prepare.
By NomadicTax Research Team • 5-8 min read • April 17, 2026
## What Are These Proposed Rules?
The IRS has published **proposed regulations** enabling brokers to furnish **Form 1099-DA statements**—which report **Digital Asset Proceeds**—electronically instead of on paper. These rules are part of new requirements under the _One, Big, Beautiful Bill Act_ that affect digital asset reporting. ([irs.gov](https://www.irs.gov/irb/2026-13_IRB?utm_source=openai))
Key aspects include:
- **Optional electronic format** for delivering 1099-DA to customers, upon customer consent. Brokers won’t have to offer paper copies if the regulations are finalized that way. Alternatively, customers must be provided a way to opt out or withdraw consent in many proposed formats. ([irs.gov](https://www.irs.gov/irb/2026-13_IRB?utm_source=openai))
- Enhanced notice and delivery requirements for electronic furnishing; e.g. email notice or electronic access once statements are posted. ([irs.gov](https://www.irs.gov/irb/2026-13_IRB?utm_source=openai))
## Who Is Affected?
- **Digital asset brokers** and platforms that facilitate transfers of digital assets in exchange for considerations. These entities may be required to furnish statements on 1099-DA forms to customers. ([irs.gov](https://www.irs.gov/irb/2026-13_IRB?utm_source=openai))
- **Customers of such brokers**, particularly those involved in frequent or high-volume transactions in crypto or other digital assets. The change affects how and when you receive your tax-relevant documents, potentially impacting your ability to track gains/losses.
## Action Steps for Brokers and Taxpayers
- **Brokers should**:
* Review the proposed rules and consider IT systems to manage electronic statements, consent tracking, and secure delivery.
* Plan to obtain customer consent or designs to deliver either paper or electronic statements under new rules.
* Monitor Treasury and IRS publications for finalized guidance.
- **Taxpayers** should:
* Maintain careful records of digital asset trades—dates, amounts, cost basis. Electronic delivery may shift timing of notice.
* Review agreements with brokers/platforms to understand how statements will be delivered.
* Stay alert for email notices or logins required to access statements electronically.
## Example
Charlie uses a crypto platform that qualifies as a broker under these rules. Currently, his 1099-DA is mailed as a paper statement every February. After regulations are finalized, the platform may switch to electronic only—but the platform must either get his consent or follow notice protocols. Charlie should ensure his contact info is up to date and that he understands how to access digital statements.
## Potential Challenges & Best Practices
- There may be **security and access concerns** if platforms post statements in online portals; check login reliability.
- Tracking **opt-outs or revocations** of consent will matter if you later need paper statements.
- Technical and administrative burdens for brokers to implement systems may include additional costs.
## Takeaway Summary
*For digital asset market participants, the upcoming electronic delivery rules for Form 1099-DA are likely to streamline paperwork but also introduce new responsibilities for both brokers and individuals. Early preparation and communication can help avoid surprises when these rules take effect.*