IRS Proposes Mandatory Electronic Tax Statements for Crypto Users

The U.S. Internal Revenue Service (IRS) is pushing for a significant policy shift, proposing to require all cryptocurrency exchanges to issue tax documents to users exclusively through digital channels. According to the latest draft, exchanges must use the new Form 1099-DA to comprehensively report users' digital asset transactions and deliver them only electronically—such as via email or a secure document center built into the platform. Users must explicitly agree to receive electronic statements when opening an account; if they refuse this condition, the exchange may terminate their account services, marking a major shift in tax communication methods.

Currently, most exchanges still offer both paper and electronic delivery channels, but the new rules will completely reverse this model. Once a user agrees to electronic delivery, they will not be able to revert to paper versions. Even if email delivery fails, they will only receive a system reminder, not a replacement paper document. This measure aims to strengthen compliance and reduce reporting omissions due to information loss.

Starting in 2025, U.S. crypto exchanges will be required to report total transaction amounts. By 2026, they will be further required to provide detailed data such as cost basis to enhance tax transparency. According to IRS statistics, currently less than 7% of crypto asset holders correctly report transactions. This reform is designed to address the serious low compliance rate. Users need to ensure their personal contact information is accurate and regularly check their email and platform notification center. All electronic statements will be retained for seven years for future audits or inquiries. While some platforms may retain personalized service options, electronic delivery will become the only mainstream method. This move is not intended to ease the burden on taxpayers but to strengthen regulatory capabilities and automation levels. Globally, the OECD and the EU have both promoted unified electronic reporting standards for crypto assets. The IRS's new policy is an important step in synchronizing with international regulatory trends.