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IRS Rolls Out 1099-DA, Raising Crypto Tax Scrutiny for 2025 Exchange Trades

Experts urge meticulous reconciliation to prevent CP2000 notices.

Overview

  • Investors will begin receiving Form 1099-DA in early 2026 for 2025 sales or exchanges executed on centralized platforms.
  • Centralized brokers have until early 2027 to issue these forms, so the absence of a form does not eliminate reporting obligations.
  • Mismatched or missing 1099s can prompt CP2000 notices from the IRS that may require amendments and lead to tax bills.
  • Moving assets among wallets and exchanges often creates gaps or duplicates, and internal transfers should be tracked as non-taxable to avoid double-counting.
  • Staking and mining receipts are typically treated as ordinary income, not capital gains, and the IRS expects all crypto income to be reported even if no form arrives.