Treasury, IRS issue proposed regulations to make it easier for digital asset brokers to provide 1099-DA statements electronically

IR-2026-29, March 5, 2026

WASHINGTON - The Department of the Treasury and the Internal Revenue Service today issued proposed regulations to make it easier for digital asset brokers to provide statements electronically to customers, rather than sending paper copies.

The proposed regulations recognize the inherent electronic nature of digital asset transactions and are intended to reduce burdens on both brokers and their customers. The proposed regulations would give brokers an alternative, optional process for obtaining consent from their customers to receive 1099-DA statements electronically without having to offer them the choice of receiving the 1099-DA statements on paper. Under this process, brokers would also not have to provide customers with the ability to withdraw a previously provided consent to receiving the 1099-DA statements in an electronic format.

The proposed rules would, however, require brokers to meet certain enhanced electronic notice and delivery requirements and to provide customer access to the statements. Brokers must ensure that customers are made aware that an important tax return document has been furnished in an electronic format and that they have continuing access to their 1099-DA statements.

Under current rules, brokers of digital assets are required to provide Form 1099-DA, Digital Asset Proceeds From Broker Transactions PDFon paper to any customer who does not affirmatively consent to receiving the 1099-DA statements in an electronic format. Beginning with statements required to be furnished on or after Jan. 1, 2027, brokers are permitted to follow these new proposed rules when furnishing 1099-DA statements for transactions.

The Treasury Department and IRS acknowledge that the cost of printing and mailing paper 1099-DA statements may be unnecessarily burdensome for brokers because of the large number of digital asset transactions that some customers engage in each year. This furnishing relief for brokers is feasible because digital asset customers almost exclusively conduct transactions electronically.

Digital assets include, for example, certain convertible virtual currencies and cryptocurrency, as well as stablecoins and non-fungible tokens.

The Treasury Department and the IRS today also issued Notice 2026-4 PDFrequesting comments from the public on the issues involved with electronic furnishing of 1099-B statements and other payee statements. Comments submitted on the electronic furnishing of 1099-B statements or other payee statements should be submitted in accordance with the instructions provided in Notice 2026-4.