Crypto Investors, Get Ready: Your Transactions Will Be Reported to the IRS Soon!

You’ve bought and sold crypto this year, but did you know that from next year, your transactions could be reported to the IRS for the first time? Yes, you read that right! If you’re using popular platforms like Coinbase or Gemini, they will be sending info about your crypto buys and sells to the taxman. So, what does that mean for you? Well, these companies, called brokers, keep tabs on your crypto purchases and sales throughout the year. They’ll then send this info to the IRS on a new form called the 1099-DA. You’ll get a copy of this form too, which you’ll need to include on your annual tax return for 2025.What if you don’t use these centralized platforms? No worries, the timeline is a bit different for decentralized ones like Uniswap. They won’t have to report until 2027, but they’ll still send info about your transactions’ gross proceeds. Even if you own a bitcoin ETF, the provider will send you a 1099-B or 1099-DA. It’s a good idea to get tax advice if you’re an ETF shareholder, as there can be taxable events even if the ETF holds the asset for the long term. Remember, this isn’t a new tax, but a way to make sure you pay what you owe. So, if you haven’t been reporting your crypto transactions, now’s the time to start!