Many crypto and mainstream publications have incorrectly reported that recent Notice 2025-7, TEMPORARY RELIEF UNDER SECTION 1.1012-1(j)(3)(ii), from the Internal Revenue Service has delayed broker tax reporting rules until 2026. This is not correct, the reporting requirements that went into effect January 1, 2025 (yesterday) remain in effect with first reporting in 2026 over 2025 digital asset sales/exchanges.
As Ledgible VP of Tax Information Reporting, Jessalyn Dean, noted on LinkedIn, "Don't believe everything on the internet: the IRS has definitely not delayed implementation of the 2025 tax year Form 1099-DA reporting for #DigitalAsset brokers that went into effect yesterday. People using AI to write and post the news are spreading incorrect information, because AI can hallucinate sometimes and this time it did. Some of this information is even being spread by credible news websites."
What does TEMPORARY RELIEF UNDER SECTION 1.1012-1(j)(3)(ii) actually delay?
Notice Notice 2025-7 from the IRS released last week, provides relief to CeFi exchanges to allow individual taxpayers to select specific accounting methods for their sales, initially supposed to take effect on 1/1/2025. Essentially, if you sell crypto on a CeFi exchange in 2025, you can now still use your own records to use other accounting methods, such as HIFO, or LIFO, rather than being stuck with FIFO accounting. The temporary relief delays the need for CeFi exchanges to have this functionality in their reporting until 2026.
What this relief did not do is eliminate the requirement for broker tax reporting for digital assets, like many publications have been incorrectly reporting. Nor does the Notice delay the rule that you must do tax lot relief on a wallet-by-wallet basis
This underscores why brokers need trusted experts, like our team at Ledgible, to help you cut through the misinformation, understand the actual tax code, and comply with the new tax information reporting requirements for digital assets.
