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IRS Introduces Form 1099-DA for Reporting Tokenized Stocks and Bonds
Starting in 2025, the Internal Revenue Service (IRS) will be introducing a new form specifically designed for reporting tokenized stocks and bonds. This move is aimed at improving tax compliance and monitoring of tokenized securities.
As of March 27th, IRS has announced that they are shifting the reporting of digital assets from Form 1099-B to Form 1099-DA. The introduction of this new form is a significant development in the crypto market as it acknowledges the growing prevalence of tokenized financial products.
Form 1099-DA: A New Era for Tokenized Securities
The IRS has introduced Form 1099-DA, which will be used for reporting tokenized stocks and bonds. This change aims to provide clarity and accuracy in the reporting process, ultimately enhancing tax compliance and monitoring of these digital assets. The new form is designed to address the increasing complexity of digital asset transactions and provide a clear record of events.
Brokers have been given a transition period from 2025 until the end of 2026 to adjust their systems and reporting processes to accommodate the new requirements. This additional time allows them to prepare for the mandatory switch to Form 1099-DA in 2027.
A significant change has arrived in the financial landscape with the introduction of this new form. The IRS’s intention is to standardize tax compliance across all digital assets, ensuring accurate record-keeping and enforcement of capital gains or losses.
Source: https://cryptonewsland.com/irs-introduces-form-1099-da-for-reporting-tokenized-stocks-and-bonds/
