Digital Nomad

Preparing for Digital Asset Reporting & 1099-DA Changes

Changes ahead for digital asset brokers and taxpayers: what to expect, how to track basis, and how to provide consent.

By NomadicTax Research Team • 5-8 min read • April 9, 2026

## Emerging Rules for Digital Asset Brokers & Tax Reporting The IRS and Treasury issued a proposed regulation (IR-2026-29, March 5, 2026) aiming to simplify how digital asset brokers furnish **Form 1099-DA** statements. Key changes include: brokers may get **customer consent** to deliver Form 1099-DA **electronically without offering paper**, starting for statements furnished **on or after January 1, 2027**. Enhanced notice, disclosure of methods, and access period requirements would be imposed. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-to-make-it-easier-for-digital-asset-brokers-to-provide-1099-da-statements-electronically?utm_source=openai)) ## What Digital Asset Holders Must Know Now - Brokers must still send the same information in statements furnished to both taxpayers and the IRS by **Feb 17** for calendar-year transactions. ([irs.gov](https://www.irs.gov/newsroom/reminders-for-taxpayers-about-digital-assets?utm_source=openai)) - Most statements for 2025 will **not include cost basis** — taxpayers must calculate gains or losses themselves. Be ready with records reflecting acquisition price, dates, fees. ([irs.gov](https://www.irs.gov/newsroom/reminders-for-taxpayers-about-digital-assets?utm_source=openai)) - Penalties or backup withholding rules for brokers may evolve under IRS matching or verification programs. Stay attentive. ([irs.gov](https://www.irs.gov/irb/2024-29_IRB?utm_source=openai)) ## Actionable Advice for Digital Nomads & Traders ### Recordkeeping & Organization - Maintain detailed records of every trade or transaction – date, type of asset, amount, fair market value, fees. - Consolidate data across exchanges, wallets, DeFi platforms to avoid missing transactions. - Use trusted accounting or crypto tax-software platforms to track basis and categorize events (taxable vs non-taxable). ([irs.gov](https://www.irs.gov/newsroom/tax-professionals-can-prepare-now-to-assist-their-clients-with-reporting-proceeds-from-certain-digital-asset-transactions?utm_source=openai)) ### Consent & Delivery Decisions - Beginning in 2027, if your broker obtains valid consent under proposed rules, you may get electronic 1099-DA only; paper copies may not be offered by default. ([irs.gov](https://www.irs.gov/irb/2026-13_IRB?utm_source=openai)) - Ensure your email, portal access, and provider settings are up-to-date, as notices may be delivered electronically only. Confirm that you’re informed of delivery and that statements are accessible for required periods. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-to-make-it-easier-for-digital-asset-brokers-to-provide-1099-da-statements-electronically?utm_source=openai)) ### When Filing Your Return - Even if you don’t receive Form 1099-DA, you must report income, gains or losses from digital assets. ([irs.gov](https://www.irs.gov/newsroom/reminders-for-taxpayers-about-digital-assets?utm_source=openai)) - Use the basis you’ve calculated; the IRS expects gain or loss computation independently if not provided. Capital gains/losses — short-term vs long-term treatment by holding period matters. ## Example Scenarios **Traveler**: You travel frequently and engage in crypto trades during the year across multiple wallets. Use software to export CSVs, reconcile trades, fees. When you receive 1099-DA (without basis), insert your basis calculations in Schedule 1 or relevant schedules and include all trades. **Broker’s Customer**: Your digital asset exchange asks for your consent to electronic delivery without paper option. Read disclosures about how to access the statement, email notices, etc. If you prefer paper, know that under proposed rules you might not have option unless your broker justifies offering paper or you change brokers. ## Timeline & Compliance Tips - Proposed regulation effective for statements furnished **on or after Jan 1, 2027**. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-to-make-it-easier-for-digital-asset-brokers-to-provide-1099-da-statements-electronically?utm_source=openai)) - Public comments are being requested (not yet final), so there may be changes. Stay tuned. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-to-make-it-easier-for-digital-asset-brokers-to-provide-1099-da-statements-electronically?utm_source=openai)) - Prepare for 2025 filings now: track basis, ensure supporting documentation, gather all digital asset activity. ([irs.gov](https://www.irs.gov/newsroom/reminders-for-taxpayers-about-digital-assets?utm_source=openai)) By staying proactive, digital nomads, traders, and professionals can minimize surprises this tax season and beyond.