Content Gen Dashboard

On March 5, 2026, the Department of the Treasury and the Internal Revenue Service (IRS) issued proposed regulations to streamline the electronic delivery of Form 1099-DA statements by digital asset brokers to their customers. The proposed regulations recognise the inherently electronic nature of digital asset transactions and aim to reduce administrative burdens on brokers and customers. Under the new optional process, brokers would be permitted to obtain customer consent for electronic delivery of 1099-DA statements without offering a paper alternative or providing customers with the ability to withdraw previously provided consent. However, brokers must comply with enhanced electronic notice and delivery requirements, including ensuring customers are aware that important tax documents have been furnished electronically and maintaining continuing customer access to statements. The Treasury Department and IRS acknowledge that printing and mailing paper 1099-DA statements creates unnecessary costs for brokers given the volume of digital asset transactions many customers conduct annually. The proposed rules recognise that digital asset customers predominantly conduct transactions electronically, making electronic furnishing feasible and appropriate. Digital assets covered include convertible virtual currencies, cryptocurrency, stablecoins, and non-fungible tokens. The proposed regulations would apply to 1099-DA statements required to be furnished on or after January 1, 2027. Simultaneously, the Treasury Department and IRS issued Notice 2026-4, requesting public comments on electronic furnishing of Form 1099-B statements and other payee statements. Comments should be submitted in accordance with instructions provided in Notice 2026-4. REFERENCES: Internal Revenue Service, "Treasury, IRS issue proposed regulations to make it easier for digital asset brokers to provide 1099-DA statements electronically," IR-2026-29, March 5, 2026.

On March 5, 2026, the US Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) issued proposed regulations to modernize the delivery of tax statements for digital asset transactions. Under current rules, brokers must provide a paper Form 1099-DA, Digital Asset Proceeds From Broker Transactions unless a customer affirmatively consents to electronic delivery. The new proposal introduces an optional, alternative process specifically for Form 1099-DA that allows brokers to require electronic delivery as a condition of using their platform. Key features of the proposed regulation includes: Mandatory Electronic Consent: Brokers can make electronic delivery a non-negotiable condition of service, meaning they would not be required to offer a paper option or allow customers to withdraw consent while remaining a user Enhanced Notice Standards: To balance the lack of paper options, brokers must provide robust electronic notices, including mandatory email alerts when statements are available and guaranteed online access for a set period. The Treasury and the IRS also issued Notice 2026-4 , requesting public comment on whether the current rules governing the electronic delivery of Form 1099-B and related payee statements included in composite Form 1099-B statements should be modified. The US Treasury Department and IRS are considering changes that would mirror aspects of the proposed electronic framework for Form 1099-DA by allowing brokers greater flexibility to furnish these statements electronically. In order to reduce administrative burdens on brokers, the agencies are exploring how to minimize the costs associated with printing and mailing large volumes of paper statements. The Treasury and IRS acknowledge that the cost of printing and mailing paper 1099-DA statements may be unnecessarily burdensome for brokers because of the large number of digital asset transactions that some customers engage in each year. This furnishing relief for brokers is feasible because digital asset customers almost exclusively conduct transactions electronically. If finalized, these rules would apply to statements required to be furnished on or after January 1, 2027.

meta_id 2936795

Generated

United States Treasury and IRS Issue Proposed Regulations on Electronic Delivery of Digital Asset Broker Statements

Agent draft

Published

US Department of Treasury and Internal Revenue Service Issue Proposed Regulations for Digital Asset Broker 1099-DA Statements