PANews reported on January 16 that according to CNN, in the next few months, most Americans will be busy preparing tax documents for 2024. For those who buy and sell digital assets such as Bitcoin, it is important to know that 2025 will be the first relevant tax year. If the transactions are conducted in the custody accounts of centralized crypto trading platforms such as Coinbase and Gemini, these transactions will be subject to third-party reporting requirements, and the relevant information will be submitted to the U.S. Internal Revenue Service (IRS).

The IRS noted that companies responsible for reporting include operators of custodial digital asset trading platforms, certain digital asset custodial wallet providers, digital asset self-service terminals, and certain digital asset payment processors (PDAPs). These brokers will record cryptocurrency transaction information in user accounts throughout the year and report it on the new 1099-DA form, which will be sent to users and the IRS in early 2026.

However, in terms of cost basis — the price at which users purchase crypto assets, which is used to calculate taxable gains when they sell them — brokers don’t actually have to report this information until the 2026 tax year, said Jessalyn Dean, vice president of tax information at cryptocurrency tax software provider Ledgible.