Tax Alert: Prepare for the New 1099-DA Crypto Reporting

Form 1099-DA, “Digital Asset Proceeds from Broker Transactions,” is a new Internal Revenue Service (IRS) tax form that certain brokers must use to report digital asset transactions. It is designed to enhance transparency and compliance in the rapidly evolving digital asset space, requiring information on transactions involving cryptocurrencies, non-fungible tokens (NFTs), and other digital assets.

The reporting requirements for Form 1099-DA officially take effect for the 2025 tax year, with brokers sending the forms to taxpayers and the IRS in early 2026. Before this change, reporting digital asset transactions was largely dependent on self-reported data, which often led to inconsistencies and underreporting.

Tax Advantages of Qualified Charitable Distributions

Qualified Charitable Distributions (QCDs) are a highly effective tool in the tax planning toolkit, particularly for retirees who must take Required Minimum Distributions (RMDs) from their Individual Retirement Accounts (IRAs). By directing a portion or all of an RMD directly to a charity, taxpayers can potentially reduce their taxable income significantly, yielding multiple tax advantages. 

Understanding QCDs 

A QCD is a transfer of funds from an individual's IRA , directly to a qualified charity. These distributions can be counted toward satisfying your RMD for the year, up to an inflation adjusted maximum amount. QCDs were first introduced as a temporary provision in 2006, but since then have become a permanent feature of the tax code.