Digital Nomad
What Digital Asset Investors Need to Know: IRS Digital Asset Identification Relief for 2025-2026
New IRS relief allows better basis tracking for digital assets through 2026—read what you must do to avoid surprises.
By NomadicTax Research Team • 5-8 min read • June 8, 2026
## Understanding the Temporary Relief
IRS **Notice-2026-15**, published in Internal Revenue Bulletin 2026-15, offers **temporary relief** for digital asset owners for the period **January 1, 2025 through December 31, 2026** (the relief period). ([irs.gov](https://www.irs.gov/irb/2026-15_IRB?utm_source=openai)) Under this:
- Taxpayers may rely on their **books and records** to identify particular units sold/disposed of, even when a broker’s reporting doesn’t match, provided certain conditions are met. ([irs.gov](https://www.irs.gov/irb/2026-15_IRB?utm_source=openai))
- Standing orders or specific identifiers (e.g. purchase date, purchase price) can be used to designate the units being sold or transferred. ([irs.gov](https://www.irs.gov/irb/2026-15_IRB?utm_source=openai))
## Why This Relief Matters
- Without relief, strict IRS matching rules could force taxpayers into default basis election and potential unfavorable cost basis (e.g., FIFO).
- With current digital asset trading volume and brokerage statements often mismatched, this relief helps reduce risk of unintended tax overpayments and penalties.
## Key Compliance Steps & Examples
### What You Must Do
- Maintain clear records that show which units (by acquisition date or cost) you intend to sell or transfer.
- If you rely on **standing orders** to the broker, be sure those orders are made **in advance**, are documented in your own books, and match what is sold.
- When selling units during 2025 or 2026, identify the specific unit in your records either at **date/time of transaction** or via a standing order made before the transaction.
- For transfers/deposits, clearly document in your personal records, even if broker tries to use a default method.
### Example
Jacob bought three batches of Bitcoin: one in Jan 2025 (cost $30,000), another in June 2025 ($40,000), and one in Jan 2026 ($50,000). In September 2026, he sells 0.5 BTC worth from the “June 2025” batch. Under the relief, he can use his records to identify that specific batch—even if broker statements group them differently—thus using the correct basis and holding period, as long as his books properly describe that batch and were made before sale. Without relief, he might be forced into less favorable matching like FIFO.
## Limitations & Watch Outs
- The relief ends on **December 31, 2026**. Post-2026 transactions will follow final or default matching rules.
- If an individual fails to maintain adequate identifying information, default basis rules may apply.
- Only applies to units held in custody of a **broker**—if held in cold wallets or elsewhere, different rules might apply; but still need clear records.
- Relief may not apply in cases where broader regulations override or impose stricter matching.
## Action Plan for Investors
1. Review every digital asset purchase and sale since Jan 1, 2025 and ensure your books record acquisition dates, price, and holding period.
2. Where possible, issue standing orders for units you expect to sell in future to provide clearer identification.
3. Consult with a tax advisor before year-end 2026 to prepare for transition out of relief and ensure any final matching and reporting compliance.
4. For high volume traders, maintain software or detailed ledger to track unit basis per transaction.
## Final Thoughts
For taxpayers managing digital assets, this temporary relief is a key window to get your basis methods aligned with the law in a favorable way. Use it to establish consistent record-keeping, minimize taxable misreporting, and prepare now for when the relief expires.