The IRS has provided additional transitional relief for brokers who must report certain digital asset sales and exchanges on Form 1099-DA, Digital Asset Proceeds From Broker Transactions.
Notice 2025-33 extends the transition relief from backup withholding tax liability and associated penalties for any broker who fails to withhold and pay the backup withholding tax for any digital asset sale or exchange transaction effected during calendar year 2026.
The notice also provides additional transition relief for brokers for sales of digital assets effected during calendar year 2027 for certain customers who have not been previously classified by the broker as U.S. persons. Read more.