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Treasury and IRS Propose Electronic 1099-DA Delivery Rules in REG-105064-25

By chrisomo

1099-DA electronic delivery moved closer to reality on March 5, 2026, when the Treasury Department and the Internal Revenue Service released proposed regulations under REG-105064-25 that would let digital asset brokers furnish Form 1099-DA payee statements to customers electronically without the obligation to maintain a paper delivery alternative.

What the proposed regulations do

The proposed regulations amend Treas. Reg. section 1.6045-1(d) to add an electronic delivery framework specifically for Form 1099-DA, the new digital asset proceeds and basis statement that brokers must furnish under TD 10000. Under the proposal, a broker may furnish the 1099-DA exclusively through an electronic medium if the recipient has affirmatively consented to electronic delivery in a manner that confirms the recipient can access the statement in the format used. The consent itself must be obtained electronically using software that informs the recipient of the hardware and software needed to access the statement, per the IRS press release accompanying REG-105064-25.

The broker must also provide a clear disclosure of the recipient’s right to withdraw consent, the procedure for withdrawing consent, the procedure for requesting a paper copy after consenting to electronic delivery, and the date the electronic statement will be available. If a recipient does not consent, the broker must continue to furnish a paper statement under the existing rules. The structure tracks the long-standing electronic furnishing rules for Forms W-2 and 1099 series under Treas. Reg. section 31.6051-1(j) and existing 1099 electronic consent rules under section 1.6041-1(g), which firms including KPMG flagged in its TaxNewsFlash analysis as the template Treasury borrowed from.

The 2025 to 2026 Form 1099-DA timeline so far

Treasury and the IRS issued final regulations on digital asset broker reporting in TD 10000, published in the Federal Register on July 9, 2024. Those rules apply to digital asset sales and exchanges effected by custodial brokers on or after January 1, 2025, with gross proceeds reporting required on Form 1099-DA for the 2025 tax year and basis reporting required for transactions on or after January 1, 2026, per the IRS’s About Form 1099-DA page. The first wave of 1099-DA statements is being furnished to customers during the 2026 filing season.

On top of that framework, the IRS released the 2025 Instructions for Form 1099-DA and the final Form 1099-DA in late 2025. The March 2026 proposed regulation sits on top of that final framework; it does not change what is reported, only how the statement reaches the customer. Public accounting firm Carr, Riggs and Ingram noted in its March 6, 2026 client alert that REG-105064-25 is “delivery mechanics relief, not a substantive change to broker reporting obligations under TD 10000.”

What this means for digital asset brokers

For custodial brokers that have already onboarded customers under TD 10000, the proposed rule removes the paper-default fallback that several brokers cited as a costly carve-out from their otherwise digital-first customer experience. Coinbase, Kraken, Gemini, Robinhood Crypto, Fidelity Digital Assets, and other custodial brokers are the primary in-scope population, all of which had to build out paper-furnishing operations for the 2025 tax year because the existing rule did not permit pure electronic delivery for the new form, per the IRS press release.

The operational lift for brokers is concentrated in three areas: updating the customer agreement and onboarding consent flow to include the affirmative electronic delivery consent and hardware/software disclosures; building a customer-facing portal where the 1099-DA is posted and remains accessible through the statute of limitations period; and providing the withdrawal-of-consent and paper-copy-request mechanics. KPMG’s TaxNewsFlash points out that brokers that already use electronic delivery for Forms 1099-B, 1099-INT, and 1099-DIV under section 1.6041-1(g) can extend their existing consent stack rather than build new infrastructure.

What this means for tax preparers

For tax preparers, the practical implication is that 1099-DA copies will increasingly arrive in client portals rather than in paper packets. Preparers that built their 2025 filing season intake around mailed broker statements will need to update client checklists for 2026 returns and beyond to require clients to download and forward the electronic 1099-DA from their broker portal.

The Carr, Riggs and Ingram alert recommends that preparers add a specific 1099-DA portal-pull step to the client organizer, on the theory that crypto-active clients often fail to recognize a portal-hosted statement as a tax document. Big Four firm guidance from PwC and Deloitte on the prior TD 10000 rollout had already emphasized that 1099-DA reconciliation against client wallet activity is the highest-friction part of the new regime, and that reconciliation burden is unchanged by the delivery proposal.

Comment period and finalization timing

Under the standard Administrative Procedure Act process and the timing described in the March 5, 2026 IRS release, the comment period runs 60 days from Federal Register publication. Treasury indicated it intends to finalize the rule in time to apply to Form 1099-DA statements furnished for the 2026 tax year, which brokers will deliver in early 2027. Practitioners that want to weigh in on the consent-withdrawal mechanics, the hardware/software disclosure language, or the interaction with state digital asset reporting regimes should file comments through regulations.gov by the docket deadline.

Read more accounting regulatory news, additional Treasury and IRS coverage, and our ongoing crypto tax accounting reporting. See also our 2026 FASB ASU 2023-08 adoption tracker.