IRS Proposes Mandatory Electronic Delivery of Crypto Tax Forms

The Internal Revenue Service has proposed requiring cryptocurrency exchanges to deliver tax documents electronically. Under current rules, exchanges must provide paper copies of Form 1099-DA if users request them; the new proposal would remove that obligation and let brokers terminate relationships with clients who refuse electronic delivery.

It would also bar users from revoking consent for electronic forms retroactively, effectively shifting to mandated electronic tax forms. Brokers would still be required to report user proceeds from each transaction and to issue Form 1099-DA documenting transaction history.

Exchanges are not required to track cost basis for the 2025 tax year, so determining the price paid for each purchase remains the investor's responsibility. The IRS says brokers must include identifying information such as a customer’s name and tax identification number and the gross proceeds from each transaction.

United States

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