Over Half of U.S. Crypto Investors Worried About IRS Penalties as New 1099-DA Rules Take Effect

More than half of U.S. digital asset investors are concerned about potential Internal Revenue Service penalties under new tax transparency requirements, a late-January survey of 1,000 investors by Awaken Tax shows, CoinDesk reports. The rules require crypto exchanges including Coinbase to file Form 1099-DA, "Proceeds from Broker Transactions in Digital Assets," with the IRS this week, shifting crypto asset taxation from a self-reporting framework to an automated broker reporting system. The new regime is designed to combat crypto tax evasion by allowing the IRS to cross-reference broker-reported information with individual taxpayer returns using exchange customer data.