New research published in the academic journal Review of Accounting Studies shows that only 32% to 56% of US taxpayers holding virtual currency actually reported their transactions to the federal government, according to a report by CNBC. Starting in 2025, the IRS will require intermediaries to file Form 1099-DA, a virtual-currency-specific tax reporting form. Under that requirement, inconsistencies between reports filed by industry intermediaries and declarations made by individual taxpayers will be easier for authorities to identify. In its first year, the form only requires reporting of total proceeds; the obligation to report cost basis will be formally added starting in 2026.
Just 32% to 56% of US taxpayers holding virtual currency actually declared their transactions to the federal government, according to a new study in the academic journal Review of Accounting Studies, as reported by CNBC.
Starting in 2025, the IRS will require intermediaries to submit Form 1099-DA, a virtual-currency-specific tax reporting form. The mandate will make it easier for authorities to identify inconsistencies between industry-filed reports and taxpayer declarations.
In its first year, the form only requires reporting of total proceeds. The obligation to report cost basis will be formally added starting in 2026.
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