Starting January 1, 2025, centralized cryptocurrency exchanges like Coinbase and Kraken must collect data for the new Form 1099-DA tax document. The IRS will receive these forms during the 2026 filing season, enabling it to match digital asset transactions to taxpayer returns, just as it does with stock trades. For 2025 transactions, brokers only need to report gross proceeds; cost basis reporting becomes mandatory only for qualifying 2026 transactions. Decentralized exchanges remain exempt from these reporting requirements, although their transactions remain taxable. The IRS will offer penalty relief for brokers making good-faith efforts in their 2025 reporting.
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