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High urgency

Digital assets | Internal Revenue Service

Detected July 5, 2026 · in Crypto & DeFi Tax Reporting

IRS updates digital asset guidance, clarifying broker reporting requirements for DeFi and crypto exchanges, effective for 2025 tax year.

Aforeworn detected this change in the Crypto & DeFi Tax Reporting space on July 5, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Crypto exchanges/brokers, DeFi protocols, accounting firms, high-volume traders should confirm how it applies to their specific situation before acting. There is a time constraint attached: January 1, 2025 (effective date for new reporting requirements). Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Crypto & DeFi Tax Reporting continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.

What changed

IRS finalized rules requiring brokers (including DeFi platforms) to report digital asset transactions on new Form 1099-DA, with cost basis and wash sale rules applied.

Who it affects

Crypto exchanges/brokers, DeFi protocols, accounting firms, high-volume traders

What you must do

Update reporting systems to capture and report transaction data per new 1099-DA specifications; adjust cost basis tracking for wash sale disallowance.

Deadline

January 1, 2025 (effective date for new reporting requirements)

Source: https://www.irs.gov/businesses/small-businesses-self-employed/digital-assets

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