The Treasury Department proposed regulations (RIN 1545-BR47, REG-105064-25) that would provide crypto-asset brokers with an optional consent-approval process that drops the requirement to provide a paper alternative if a customer doesn’t consent for an electronic statement.
“The Treasury Department and IRS acknowledge that the cost of printing and mailing paper 1099-DA statements may be unnecessarily burdensome for brokers because of the large number of digital asset transactions that some customers engage in each year,” the agencies said in a press release.
Pursuant to I.R.C. Sec. 6045, crypto brokers are required to obtain consent from their customers before they furnish electronic statements, known as 1099-DA. If consent isn’t given, a broker is required to send a paper statement.
The proposed regulations would allow the brokers not to provide a paper form and, if elected, terminate their business relationship with the customer that denied electronic delivery consent.
The Service also released IRS Notice 2026-4 on Thursday requesting comments from taxpayers on current requirements brokers must meet to furnish information from form 1099-B on electronic statements to customers. The form is used to report proceeds from broker and barter exchange transactions.
Comments for the proposed regulations are due May 5, and for the IRS notice on May 23.