IRS Drafts 2026 Form W-9 to Include Digital Asset Reporting Rules

The IRS introduces new compliance measures, requiring U.S. brokers to verify tax IDs for digital asset transactions, effective January 1, 2026.

170d ago

Summary

The IRS has issued a draft of the 2026 Form W-9, adding compliance requirements for digital asset transactions. U.S. brokers must collect and verify clients’ tax identification numbers for cryptocurrencies, NFTs, and other digital assets. The draft also guides sole proprietors and disregarded entities to reduce backup withholding risks. The new rules are set to take effect on January 1, 2026.

Terms & Concepts

Form W-9: An IRS form used by U.S. persons to provide their taxpayer identification number to entities that will report income paid to them.
Backup Withholding: A tax withholding requirement by the IRS, applied when a taxpayer fails to provide a correct taxpayer identification number to the payer.
Digital Assets: A broad category of assets stored digitally, including cryptocurrencies, non-fungible tokens (NFTs), and other blockchain-based holdings.