IRS extends adequate identification relief of digital asset units through 2026

The IRS extended for an additional year to Dec. 31, 2026, temporary relief that allows eligible taxpayers to use alternative methods to make adequate identification of digital asset units that are sold, disposed of, or transferred.

Notice 2026-20 extends the temporary relief provided in January 2025 that allows a taxpayer to make an adequate identification during the relief period of a taxpayer’s units of a digital asset to be sold, disposed of, or transferred from the taxpayer’s units held in the custody of a broker by two alternative methods.

If a taxpayer makes an adequate identification, the rule that treats taxpayers whose broker offers only one method of making a specific identification as having made a standing order or instruction does not apply. Read more.