Starting with the 2026 tax year, the IRS has officially activated the Form 1099-DA, making digital asset activity a major enforcement priority.
- Broad Broker Definition: The IRS now classifies crypto exchanges, payment processors, and even some wallet providers as “brokers” required to issue these forms.
- Matching Notices: Any discrepancy between your reported digital asset sales and the data received via 1099-DA will trigger an automatic IRS notice.
- The Shark Insight: “Privacy in crypto is dead for business owners. If your LLC trades digital assets, you must track fair market value at the moment of every transaction. In 2026, the IRS knows exactly what’s in your wallet; make sure your tax return says the same thing”.