IRS Updates Crypto Tax Form, Excludes Wallet Address to Ease Privacy Concerns
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
The U.S. Internal Revenue Service (IRS) has unveiled an updated draft of the 1099-DA tax form, which crypto brokers and investors will use to report certain transactions.
The revised version, set to take effect in 2026, aims to streamline the reporting process while addressing privacy concerns raised by the initial draft.
The 1099-DA will be used by crypto investors who engage with brokers, primarily centralized exchanges like Coinbase and Kraken, to report taxable events related to the sale and exchange of digital assets.
The IRS’s latest draft simplifies the form significantly compared to the version first proposed in April.
The revised form eliminates the requirement for investors to input their wallet addresses and transaction IDs, which had sparked significant privacy concerns.
Additionally, the updated form no longer demands the inclusion of transaction times, only the dates, further reducing the amount of sensitive information that needs to be disclosed.
Another major change is the removal of a section that required filers to specify the type of broker involved in the transaction.
The previous draft had options like “kiosk operator,” “digital asset payment processor,” “hosted wallet provider,” “unhosted wallet provider,” and “other.” This section has been entirely omitted from the new draft, making the form less complex and less invasive.
This revision comes on the heels of the IRS finalizing regulations for crypto broker reporting requirements just two months ago.
However, the agency has indicated that it will issue
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