Refusing new IRS crypto tax forms could cost you your exchange account
The post Refusing new IRS crypto tax forms could cost you your exchange account appeared on BitcoinEthereumNews.com.
Log in to Coinbase next tax season, and your tax documents might no longer arrive by mail. Under a new IRS proposal, crypto exchanges could be required to file Form 1099-DA electronically. This form reports digital asset trades, and could refuse to do business with customers who decline to provide it. The comment period closes May 5, and if finalized, the rule would shift crypto tax reporting from the mailbox to the platform. This is not a tax cut or a rollback of reporting requirements. Brokers still send identical information to the IRS regardless of how they deliver forms to customers. The proposal permits exchanges to make app-based delivery mandatory. The result: millions of crypto users would receive tax forms exclusively through email and in-app document centers, with no paper backup and no right to switch back. The twist: crypto taxes are not getting lighter. They are getting quieter. What actually changes The IRS proposal creates an alternative electronic delivery process for Form 1099-DA. Under current rules, brokers must offer customers paper forms. The proposal would allow exchanges to use streamlined consent, where customers agree to electronic delivery during account setup, and exchanges could terminate relationships with anyone who refuses. Consent would likely appear as a pop-up with an “I agree” button, with language indicating the broker may not continue servicing customers who decline. Once customers consent, exchanges would not be required to let them withdraw that consent while remaining customers. The only guaranteed paper fallback would be a notice if email delivery fails, not the full tax document. Delivery would happen via posting forms to an online document center with email notification or via a direct email attachment. Exchanges must maintain access through Oct. 15 of the following year and retain prior statements for seven years. Undeliverable email triggers…
Filed under: News - @ March 7, 2026 11:15 pm