IRS Crypto Draft Form Gives Insight on Future Audit Priorities

The IRS’s newly released crypto broker reporting draft form provides a window into the crypto-specific data points the agency plans to monitor when targeting traders and brokers for audits, and signals the agency’s growing knowledge of the digital asset space.

The draft form 1099-DA, published Friday, shows crypto brokers how they will have to report the digital asset deals on their platform. The form was created for brokers to meet reporting requirements laid out last August in proposed regulations requiring exchanges and other digital assets go-betweens to report to the IRS on the transactions done on their platforms and ...