Coinbase Calls New IRS Crypto Tax-Reporting Rules Cumbersome and Confusing

The U.S. Congress passed the Infrastructure Investment and Jobs Act in 2021, requiring digital-asset brokers to report transactions to the Internal Revenue Service and customers, in line with requirements for securities brokers. The IRS subsequently introduced Form 1099-DA, which will collect gross proceeds starting with the 2025 tax year in an effort to improve crypto tax transparency and close the tax gap.

Coinbase said on March 7, 2026, that it was sending the first Forms 1099-DA to millions of U.S. customers. The forms currently report only gross proceeds, not cost basis, and include every transaction involving USDC, despite the stablecoin being pegged to $1. The company warned that large numbers of small transactions with little or no gain or loss would create excessive reporting and reconciliation burdens. Cost-basis reporting will not begin until the 2026 tax year.