Client Updates
The rules around taxes and finances are always moving. When a change comes along that could matter to you — whether it’s an IRS update, a new regulation, or an executive order — we’ll flag it here in plain language. You’ll also see these updates in your inbox, and this page keeps them all in one place for easy reference.
September 30, 2025
IRS Introduces Form 1099-DA for Digital Asset Transactions
The IRS has finalized a new information return, Form 1099-DA (“Digital Asset Proceeds From Broker Transactions”), to increase transparency and compliance in digital asset reporting.
​
Key Details
​
What is it?
Form 1099-DA is used by brokers to report sales and exchanges of digital assets (cryptocurrencies, stablecoins, certain NFTs). It requires detailed transaction information, such as customer identity, asset details, transaction date, and gross proceeds.
​
Who must file?
U.S. brokers—including custodial exchanges, hosted wallet providers, certain kiosks, and payment processors—must issue Form 1099-DA. Validators and providers of hardware/software for private key control are not treated as brokers under this rule. Non-U.S. brokers currently are not required to issue the form for U.S. customers.
​
When does it start?
​
-
Applies to digital asset transactions on or after January 1, 2025
-
First 1099-DA forms will be due in early 2026, reporting 2025 activity
What is reported?
​
-
2025 transactions: Brokers are required to report gross proceeds only (cost basis or gain/loss is not required)
-
2026 and later: Brokers will report adjusted basis and whether gains/losses are short- or long-term, but only for “covered” digital assets (those acquired and held with the same broker beginning at or after the applicable date)
Transitional relief:
​
-
For 2025, brokers that make a good faith effort will not be penalized for filing or furnishing 1099-DA late or incorrectly
-
Backup withholding on digital asset transactions is delayed until 2026
What This Means for You
​
-
If you traded, sold, or exchanged digital assets in 2025 via a U.S. broker, you may receive Form 1099-DA in early 2026.
-
The initial 1099-DA will not include cost basis information, so you will need your own records to compute gains or losses.
-
Even if you don’t receive a 1099-DA (for example, for activity on non-custodial or non-U.S. platforms), you are still legally obligated to report taxable events involving digital assets.
Want to See the Form or Get More IRS Guidance?
​
-
IRS PDF of Form 1099-DA (shows the layout and fields)
-
IRS Instructions for Form 1099-DA (official guidance for filers)
We encourage clients who want deeper insight to review those documents. And of course, if you’d like us to help interpret or apply them to your situation, we’re ready to assist.
​
Source: Internal Revenue Service
September 3, 2025
As part of the One Big Beautiful Bill (OBBB), taxpayers in certain professions may be able to deduct tip income if they meet specific income limits. Treasury has released a proposed list of occupations that would qualify. While not final, this guidance is significant for businesses and individuals who rely on tip income.
Source: U.S. Department of the Treasury
September 27, 2025
Businesses that pay contractors must prepare 1099-NEC forms before year-end to avoid penalties. Make sure W-9s are collected and reporting is ready.