IRS Extends Relief on Identifying Digital Asset Units for a Year

The IRS is extending relief to taxpayers for another year on identifying digital assets that need to be sold, the agency said in guidance Wednesday.

Notice 2026-20 addresses concerns of taxpayers who are worried about having to make an “adequate identification” of which digital asset they are selling to their custodial broker.

It extends the temporary relief given in a prior notice allowing taxpayers to use additional methods for making an adequate identification for transactions that occur during 2025. This gives more options beyond the First-In, First-Out accounting method, which limited some taxpayers in their identifications.

The IRS over ...