How the IRS Crypto Tax Rules Are Changing in 2025—and What You Need to Do About It

Standardized forms, new cost basis rules, and delayed business reporting—here’s what to expect

The IRS Is Changing the Rules for Crypto in 2025

If you own or trade digital assets, 2025 brings big changes to how you report them to the IRS. New regulations will standardize reporting requirements, redefine how cost basis is calculated, and shift responsibility to brokers—but that doesn’t mean you can take a backseat.

In fact, it’s more important than ever to stay ahead of the curve. Whether you’re an investor, self-employed professional, or business owner, you’ll need to adjust your tax strategy to stay compliant under the new system.

Here’s what you need to know—and what actions you should take now.

Who Is Impacted?

If you own any type of digital asset, these changes likely affect you. That includes cryptocurrency, NFTs (nonfungible tokens), stablecoins, and even tokenized real estate.

The IRS is treating all of these as taxable property, and any transaction—whether it’s a trade, a sale, or a purchase using crypto—is potentially reportable.

You’re also on the hook for taxes if you:

• Mine or stake cryptocurrency
• Receive crypto through airdrops or giveaways
• Get paid in crypto for services or work
• Earn rewards through lending or using crypto on DeFi platforms

The rules apply whether you’re trading casually, investing long-term, or accepting crypto in a business setting.

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New Broker Reporting Requirements Start January 1, 2025

The most significant update is the introduction of Form 1099-DA, which brokers must use to report digital asset transactions starting in 2025.

Brokers will now be responsible for collecting your tax identification details using Form W-9 and reporting your trades directly to the IRS. You’ll receive a copy too, which is meant to simplify your tax filing.

Here’s what the new 1099-DA form includes:

• Gross proceeds for each sale or exchange (required in 2025)
• Cost basis (required starting in 2026)

By standardizing this information, the IRS is closing reporting gaps that made crypto easy to underreport in previous years. In the past, brokers used a patchwork of different forms—or didn’t issue them at all.

Now, centralized exchanges, payment processors, hosted wallet providers, and even stablecoin issuers will fall under the definition of a "broker." Only noncustodial platforms and decentralized services are exempt—for now.

Cost Basis Rules Are Changing—Wallet by Wallet

Another major shift involves how you calculate the cost basis of your digital assets. Starting in 2025, the IRS will require a wallet-by-wallet method.

What does that mean for you?

Before, you might have used the “universal wallet” method, combining similar assets across different accounts into a single pool. That approach is no longer allowed.

Now, each wallet or platform you use must be treated separately, and you’ll need to track gains and losses on a per-wallet basis. This means:

• More detailed recordkeeping
• Higher risk of mistakes if you don’t have strong tracking tools
• A need to review how your past tax returns were prepared

If your transaction history is scattered across multiple exchanges or wallets, now’s the time to consolidate your records.

What About Businesses?

The IRS also plans to apply stricter rules to businesses that receive large crypto payments.

Under the Infrastructure Investment and Jobs Act, businesses that receive more than $10,000 in cryptocurrency (in one or multiple related transactions) would be required to file Form 8300—just as they would for cash.

However, the IRS has announced a temporary pause in enforcing this rule until final regulations are issued. That means:

• You don’t need to report these transactions yet
• But you should stay alert—this requirement could go into effect in 2025 or 2026

The moment the final rule is announced, businesses will have just 15 days to report large crypto payments. That’s a short window—and being unprepared could trigger penalties.

Be Ready for Increased IRS Scrutiny

With clearer reporting and better access to data from brokers, the IRS is expected to increase enforcement in the crypto space. This includes:

• More audits of crypto transactions
• Automated matching between 1099-DA forms and your returns
• Penalties for underreporting, inaccurate cost basis, or missing income

Even if a broker doesn’t issue a 1099-DA—or does so with incorrect data—you’re still legally responsible for reporting accurate tax information.

That’s why relying solely on these forms could be risky. Instead, take a proactive approach by organizing your records now.

What You Should Do Next

Digital asset taxes are complex—and they’re only getting more detailed. The best way to stay compliant is to work with a tax professional who understands the evolving landscape.

Here’s how a professional (or Resoly) can help:

• Set up recordkeeping that aligns with the new wallet-by-wallet method
• Review past returns for errors and amend if needed
• Ensure all income sources—staking, rewards, payments—are properly categorized
• Monitor updates to Form 8300 enforcement
• Prepare for potential audits under the new regime

Final Thoughts

While these IRS changes aim to bring clarity and fairness to digital asset taxation, they also raise the stakes for taxpayers.

The new rules eliminate many of the gray areas that allowed crypto to fly under the radar—and they empower the IRS to take faster, more precise action against noncompliance.

Don’t wait until the 2026 tax season to play catch-up. Prepare now, streamline your reporting, and work with experts who can help you navigate these changes with confidence.

📢 Need help understanding how IRS crypto rules affect you?
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