Digital Assets – What You Need to Do to Be Ready for Form 1099-DA
Author: Annette Nellen
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Law Updates for EAs and OTRPs
2 hours Federal Tax Updates for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
The final regulations on broker reporting will result in most taxpayers who engage in digital asset transactions to receive Forms 1099-DA starting for 2025. The are numerous special rules and exceptions and what is reported for 2025 versus later years will differ. Owners of digital assets will have additional reconciliation and recordkeeping needs starting for 2025 to determine if the forms are correct and to ensure that their records on basis and amount realized are correct. This course covers the final regulations, Form 1099-DA and transactions not reported on this form, from the perspective of the recipients of these forms and their tax advisers.
Publication Date: July 2025
Topics Covered
- Review: Basic tax considerations of digital assets
- Key provisions and definitions provided by the broker reporting rules
- What's reported on Form 1099-DA
- Dealing with the basis tracking regs effective starting in 2025, including required transition if used "universal" tracking pre-2025
- Due diligence and other practice considerations in serving clients with digital assets
- Resources
Learning Objectives
- Explain the purpose, operation and key compliance aspects of the broker reporting regulations for digital assets
- Identify key terms used in the reporting rules
- Explain the new regulations on amount realized and basis of digital assets
- Explain what do to if an investor did or did not follow the safe harbor allocation of Rev. Proc. 2024-28
- Describe what is reported on Form 1099-DA and who will file them
- Explain recordkeeping requirements for holders of digital assets, which transactions will and will not be reported on Form 1099-DA, and reconciliation actions that will be needed before filing income tax returns
Level
Update
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of digital assets such as virtual currency
Advance Preparation
None
