Tax1099, a leading IRS-authorized e-filing and compliance platform, has officially announced its full support for the new 1099-DA form, making it easier for digital asset brokers to comply with the latest IRS reporting rules or any further requirement changes.
This new 1099-DA form was introduced by the IRS to ensure transparency and compliance in the rapidly growing digital asset market. Digital asset brokers are expected to report their detailed transaction data starting with 2024 sales and expanding to broader reporting requirements for Tax Year 2025. This includes but is not limited to; gross proceeds reporting on sales, gain and loss reporting, and reporting on the transfer of assets across digital asset types, marking a significant shift in how digital assets are regulated and reported. An additional update about the instructions was released in early September, stating that the filing will be done using IRIS and not FIRE, which limits transmitted files to 100MB per file. This could pose an issue for larger brokers. and will require engineering to manage and avoid duplicate or missed filings. Fortunately, Tax1099 is prepared to help with this transition and automate the reporting process.
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“The introduction of the 1099-DA form is a major step for digital asset brokers, and we’re proud to offer a solution that meets the new regulatory requirements while ensuring a smooth transition for our users”, said Jeffrey Cronin, Chief Strategy Officer at Tax1099. “As digital assets continue to grow in importance, staying ahead of regulatory changes is vital for brokers and other reporting entities. Tax1099 is all set to provide enterprises a smooth transition from 1099-B to 1099-DA and handle their digital asset reporting and associated basis tracking.”
The platform is designed for crypto brokers to calculate cost basis, retrieve transaction data, automate workflows, handle large data volumes and much more. The platform’s scalable design adapts to the growing complexities of digital asset reporting, making it suitable for businesses of all sizes. Additionally, Tax1099 upholds the highest security standards, including SOC 1 Type 1, SOC 2 Type 2, and ISO 27001 certifications, ensuring that all sensitive data is protected throughout the reporting process.
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