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- The IRS has delayed crypto tax reporting requirements until January 1, 2026.
- The delay helps brokers prepare for a new cost basis determination system for crypto assets.
The Internal Revenue Service has delayed new crypto tax reporting requirements until January 1, 2026, giving digital asset brokers an extra year to prepare for the regulatory changes.
The deferred rules focus on determining the cost base for crypto assets held in centralized platforms. Under the regulations, if investors do not specify an accounting method, the transactions will default to a ‘First In, First Out’ (FIFO) approach.
The delay addresses concerns from tax experts about the readiness of centralized financial brokers to implement these changes. Many brokers currently lack the infrastructure to support identification methods that allow investors to choose which crypto units to sell.
The reporting requirements, originally scheduled for 2025, would have mandated brokers to report a cost basis for crypto assets sold on centralized platforms. The extension gives investors more time to strategize their accounting methods, and gives brokers extra time to develop systems for the new reporting obligations.
In June, the US Treasury Department’s IRS established a new tax regime for crypto transactions and delayed rules for DeFi wallet providers and non-hosts.
In August, the IRS shared a revised tax form 1099-DA for crypto transactions that improves privacy by omitting wallet addresses and transaction IDs.
In December, the IRS finalized tax reporting rules for DeFi brokers, aligning them with traditional asset reporting to help compliant taxpayers.
