The U.S. IRS has introduced new reporting rules for digital asset markets, requiring brokers to report cost basis data by April 15, 2026. Centralized exchanges and custodial wallet providers must file Form 1099-DA for digital asset transactions. The rule aims to address underreported capital gains and align crypto tax compliance with traditional financial markets. Investors should track purchase prices, timestamps, and on-chain data. Altcoins may face increased scrutiny as reporting standards become more stringent.

According to FinanceFeeds, the U.S. Internal Revenue Service (IRS) will enforce mandatory cost basis reporting rules for digital asset brokers effective April 15, 2026, applying to centralized exchanges, custodial wallet providers, and certain digital asset processing entities. Under the new rules, covered entities must submit Form 1099-DA to both the IRS and taxpayers, documenting the sale and exchange of digital assets. The report states that the IRS aims to close the gap in underreported capital gains from digital assets and align cryptocurrency tax reporting standards with those of traditional securities. For investors, this means maintaining more accurate records of the purchase price, date, and on-chain transaction history for each token.Source:Show originalDisclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.