Back
IRS Steps Up Crypto Tax Enforcement Ahead of April 15 Deadline

IRS Steps Up Crypto Tax Enforcement Ahead of April 15 Deadline

The IRS says covered digital asset brokers must issue Form 1099-DA for 2026 sales and trades, while advanced forensic audits will continue targeting on-chain activity despite the DeFi broker rule repeal.

Fact Check
The core substance is supported by official sources. The IRS fact sheet says final regulations require reporting on Form 1099-DA for transactions on or after January 1, 2025, and Treasury's press release says brokers must report gross proceeds beginning in 2026 for 2025 sales, with rules aligned to traditional financial reporting. That supports the parts of the claim about covered brokers, Form 1099-DA, sales/trades, and alignment with traditional securities-style reporting. However, the statement is not precise in saying the IRS 'entered a new enforcement phase on April 15 for 2026 digital asset tax reporting.' The official sources do not identify April 15 as the legal start of a distinct enforcement phase for broker reporting; rather, April 15 is the ordinary taxpayer filing deadline highlighted by DL News, while the broker reporting framework was established earlier and applies to 2025 transactions with reporting in 2026. So the claim is broadly directionally correct but overstated on timing and enforcement framing.
    Reference: 123
Summary

The IRS entered a new enforcement phase on April 15 tied to mandatory digital asset cost-basis reporting for the 2026 tax year. Centralized exchanges, custodial wallet providers, and some digital asset processors must issue Form 1099-DA for each digital asset sale and trade, extending reporting beyond transaction proceeds to include cost basis used to calculate gains or losses. The agency also said advanced forensic audits will continue to target on-chain activity even after the repeal of the DeFi broker rule, signaling continued scrutiny of crypto tax compliance beyond covered broker reporting.

Terms & Concepts
  • Form 1099-DA: A U.S. tax form used by covered digital asset brokers to report details of crypto sales and trades to taxpayers and the IRS.
  • Cost basis: The original value of an asset, typically its purchase price, used to calculate taxable gain or loss when sold or exchanged.
  • DeFi broker rule: A proposed U.S. tax reporting framework that would have applied broker-style obligations to parts of the decentralized finance ecosystem.