Looking for verified information on Form 1099-DA? Learn all about the new IRS tax return 1099-DA online with 1099DA.com.
What Is Form 1099-DA?
Form 1099-DA is an IRS information return that would specifically deal with digital assets (DA). It’s a relatively new tax form that hasn’t been released for official use.
The IRS plans to release the 1099-DA form in the next few months. Upon its release, the form would likely require businesses to report information pertaining to digital assets and cryptocurrencies.
The Infrastructure Bill focuses on streamlining the virtual currency ecosystem in the country. As a result, a new form 1099-DA is expected to be released for official use later this year, and would be in effect for the 2023 tax year, requiring businesses to file it in 2024.
Who Needs To eFile 1099-DA?
Businesses, especially those that deal with digital assets and cryptocurrencies, would be required to report with Form 1099-DA.
Currently, crypto exchanges and digital asset providers are advised by the IRS to report any crypto transactions using 1099-K and 1099-B forms as appropriate.
However, this would likely change after 1099-DA is released.
What Will Form 1099-DA Report?
Form 1099-DA or 1099-Digital Assets, resonating with its title, would exclusively be used for reporting digital asset information.
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Tax experts are weighing in that Form 1099-DA would likely retain some of the standardized regulatory information reporting elements of its 1099 form series, such as payer and recipient TINs, the legal name of the filer, and the address.
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Form 1099-DA is likely to report digital asset transactions. This means cryptocurrency marketplaces and other participants in cryptocurrency transactions would be required to fill out, and eFile 1099-DA Online with the IRS.
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Crypto exchanges and crypto trading platforms are advised by tax practitioners to retain the crypto transaction data, including the identities of their customers through KYC processes and due diligence in the meantime. This information would be useful for reporting in 2023 when the new IRS tax form 1099-DA will be in effect.
Filing Requirements For Form 1099-DA
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Transactions specific to digital assets and digital currencies would be the primary focus for Form 1099-DA.
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Cryptocurrency entities, digital asset providers, crypto platforms, and other parties involved in digital asset transactions would be required to report the payments on the 1099-DA tax form.
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While these preconditions are only tentative, the IRS has not issued any official note on the filing requirements in specific.
Form 1099-DA Reporting Instructions
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The IRS has not issued the specimen copy of the new 1099-DA form so far. So, it’s hard to interpret the possible reporting instructions at this point.
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The IRS is likely to announce further details on Form 1099-DA in the next few months. 1099-DA reporting instructions and filing requirements would be specified in future announcements from the IRS.
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Keep checking this space for more information and updates on Form 1099-DA.
Get the latest information on the 1099-DA straight to your inbox.
eFile Form 1099-DA Online
- According to the information provided by tax experts, cryptocurrency exchanges, digital asset providers, and digital asset platforms would be required to issue a 1099-DA form to their customers.
- With 1099DA.com, you can securely eFile your 1099-DA forms and send copies of the return to the participating recipients.
- As and when the IRS announces more details on the 1099-DA tax return, you can come back to this space and eFile 1099-DA online.
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