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The Proposed 1099-DA Rules: What a New Digital Asset Reporting Regime Means for Investors

Proposed digital asset broker reporting rules point toward a future where taxpayers and the IRS will be working from much more standardized information. That is helpful for compliance, but it also means recordkeeping gaps will be harder to hide behind.

Originally publishedAugust 20231 min readBusiness & Planning

Why the proposal matters before it is final

Even proposed rules send a signal. Investors and advisors can already see the direction of travel: more third-party reporting, more basis visibility, and less room for informal reconstruction after the fact.

What investors should do now

  • consolidate transaction records
  • document wallet transfers clearly
  • separate taxable sales from non-taxable movement
  • align basis tracking with what future brokers are likely to report

Bottom line

The reporting environment for digital assets is becoming more conventional. Taxpayers who still rely on fragmented records should use this period to get organized.

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