The IRS plans to allow cryptocurrency exchanges to require customers to receive tax forms electronically

MarsBitNews · 2026-03-05T15:54:43+00:00

The IRS has proposed new regulations allowing cryptocurrency exchanges to require customers to receive tax forms electronically and to cease providing services to customers who refuse electronic receipt. The new regulations strengthen compliance oversight of crypto asset holders and are currently open for public comment.

MarsBitNews

2026-03-05 15:54:43

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Mars Finance News: The U.S. Internal Revenue Service (IRS) proposed new regulations on Thursday, allowing cryptocurrency exchanges to require customers to receive tax forms electronically, such as the 1099-DA form reporting total digital asset transaction gains. Previously, exchanges were required to offer paper form options. Under the new tax reporting system implemented this year, crypto exchanges must report total transaction gains and cost basis, with the IRS automatically obtaining detailed profit and loss data, enhancing compliance oversight of crypto asset holders. The new regulation also permits exchanges to cease business relationships with customers who refuse to receive tax forms electronically. The proposal has not yet been finalized and is currently open for public comment. It is reported that crypto tax software platforms have seen a significant increase in the number of U.S. users receiving IRS warning letters, reminding them that crypto transactions may be taxable and must be reported according to regulations.

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