The IRS has provided 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 during the 2025 relief period.
Notice 2025-7 applies to adequate identification, within the meaning of Regs. Sec. 1.1012-1(j)(3)(ii), of digital assets held in the custody of brokers.
Under the notice, 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. Learn more.