IRS extends reporting requirements deadline for digital asset brokers

The U.S Treasury Department’s Internal Revenue Service (IRS) issued a public notice on June 12, 2025, extending the deadline for “digital asset brokers” to comply with the agency’s reporting requirements by an additional year, from January 1, 2026, now to 2027. Notice 2025-33. The IRS’s requirements, which were mandated in a July 2024 final rule titled “Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Sales,” originally would have required custodial digital asset brokers to begin reporting crypto sales and exchanges on Form 1099-DA starting January 1, 2025. 89 Fed. Reg. 56480. The IRS first extended the compliance deadline by a year in the same month as when they promulgated the final rule. Notice 2024-56, 29 I.R.B. 64.

Under the IRS’s previous guidance, brokers were also required to include cost basis information beginning in 2026. The biggest contributing factor in the IRS’s decision to delay the compliance deadline by another year was the significant burden digital asset brokers are facing in collecting TINs (‘taxpayer identification numbers’) from existing customers. Before the IRS published its final rule, most brokers had not been required to gather this information. The new notice (Notice 2025-33) now clarifies that brokers making good-faith efforts to comply with the new guidance will not be subject to the regulation’s strict backup withholding rules, which would otherwise require them to withhold 24% of gross proceeds from customers who fail to provide a valid TIN.

Last updated 06/16/2025.