Cryptocurrency reporting changes: what Westchester County taxpayers need to know for 2025 and beyond

New cryptocurrency reporting rules: what Westchester County taxpayers need to know

Starting with the 2025 tax year, cryptocurrency reporting is changing under new IRS broker reporting requirements. The IRS has finalized Form 1099-DA, which is designed to improve accuracy and consistency in how digital asset transactions are reported.

Final IRS rules on digital asset broker reporting (Form 1099-DA)

Historically, many taxpayers reported cryptocurrency transactions based on their own records and self-calculations. This self-reporting model often resulted in missing cost basis information, underreported gains, and inconsistencies between taxpayer filings and IRS expectations. Form 1099-DA brings digital asset reporting closer to traditional investment reporting, similar to Forms 1099-B for stocks.

IRS digital assets guidance for taxpayers

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For individual investors and small business owners in Westchester County, New York, these changes mean:

• Increased IRS visibility into cryptocurrency transactions
• Greater importance of accurate cost basis and transaction records
• Higher compliance risk if reporting does not match IRS-reported data

These rules apply whether cryptocurrency is held personally, used in a business, or accepted as payment for goods or services.

The IRS has confirmed that brokers will be required to furnish Form 1099-DA to taxpayers and file copies with the IRS once reporting is fully implemented. This increases the likelihood of IRS notices if reported amounts do not align with broker data.

IRS instructions for Forms 1099

At Nossier Accounting, we work with Westchester County taxpayers to help ensure digital asset activity is reported accurately and consistently with IRS requirements. Reviewing your records and reporting process before these forms are issued can help reduce compliance issues when filing.

Schedule a tax preparation appointment.
Schedule a dedicated appointment to review your tax situation, confirm required documents, and move forward with preparing your return.
Schedule tax preparation appointment
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