The IRS has announced new reporting rules for cryptocurrency transactions that will take effect with the 2025 tax year. These changes are designed to close loopholes that previously allowed some investors to avoid reporting crypto sales. With year‑end approaching, it’s important for taxpayers to understand what’s changing and how it may affect their filings.
Key Highlights

• Crypto treated like property: Just like stocks or real estate, selling or exchanging cryptocurrency can trigger capital gains or losses.
• New Form 1099‑DA: Beginning with the 2025 tax year, crypto brokerages must issue Form 1099‑DA to report gross proceeds from each digital asset sale. Copies will go to both the IRS and the taxpayer.
• Cost basis reporting: Starting in 2026, brokerages will also be required to report cost basis information, making it easier for the IRS to match reported gains and losses.
• Compliance focus: In past years, many investors failed to report crypto activity. The new rules make it much harder to omit transactions without detection.
• Year‑end planning: Investors should review their crypto activity now, ensure records are complete, and be prepared for new reporting forms in early 2026.

What This Means for You

If you buy, sell, or exchange cryptocurrency, expect to receive new tax forms from your brokerage beginning with the 2025 tax year. These forms will make it easier to prepare your return, but they also mean the IRS will have detailed records of your transactions. Staying organized and reporting accurately will help you avoid penalties and notices.

Source: CNBC, November 22, 2025, by Cheryl Winokur Munk
This summary is for informational purposes only and does not constitute legal or tax advice. For authoritative guidance, consult IRS.gov or a licensed tax professional.