New US Crypto Tax Regulations: Exchanges Required to Report Transaction Amounts, Investors to Calculate Gains and Losses Themselves

The Internal Revenue Service (IRS) has mandated that for transactions in 2025, brokers must report the sales income of digital assets, but typically do not need to report the cost basis, leaving taxpayers to calculate their own gains and losses. Starting in 2026, brokers will be required to report the cost basis for eligible digital assets. The IRS emphasizes that even if taxpayers do not receive a 1099-DA form, they are still required to report income and gains or losses related to digital assets. During the first tax season applying the crypto asset 1099-DA reporting rules, some investors are facing difficulties due to missing transaction data and challenges in verifying cost basis. A survey conducted by Awaken Tax in August among 1,000 US crypto investors revealed that 21% of respondents have filed their taxes or plan to apply for an extension while waiting for exchanges or crypto platforms to provide the necessary information; about 20% reported that their 1099-DA form information is incomplete or uncertain whether it accurately reflects their trading situation.

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