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IRS Proposes Digital Delivery of Tax Forms by Crypto Exchanges

IRS Proposes Digital Delivery of Tax Forms by Crypto Exchanges

According to the IRS, the proposed rule aims to digitize the 1099-DA tax form for crypto exchanges, reducing paper costs and operational burdens while improving reporting efficiency.

Fact Check
The claim is supported by multiple reputable crypto news outlets (The Block, PANews, Odaily) reporting on a specific IRS proposal released on March 5, 2026. The details regarding the 1099-DA form and the move toward mandatory electronic delivery align with the implementation timeline of the Infrastructure Investment and Jobs Act's tax reporting requirements for digital assets.
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Summary

The U.S. Internal Revenue Service proposed an amendment to crypto tax regulations that would permit exchanges to deliver the 1099-DA form electronically. The move seeks to reduce paper processing costs and simplify compliance workflows for digital asset reporting. The measure is currently open for public comment before a final decision is made, reflecting the agency’s ongoing efforts to modernize tax administration for cryptocurrencies.

Terms & Concepts
  • 1099-DA: A proposed U.S. tax reporting form designed for digital asset transactions, requiring brokers or exchanges to report crypto transaction proceeds, gains, and related tax information.
  • IRS (Internal Revenue Service): The U.S. federal agency responsible for administering tax laws, collecting taxes, and enforcing tax compliance.