- with readers working within the Banking & Credit, Insurance and Law Firm industries
On March 5, 2026, the Internal Revenue Service and the Department of the Treasury issued proposed regulations (REG-105064-25) that would modify the rules governing how digital asset brokers deliver IRS Form 1099-DA, Digital Asset Proceeds From Broker Transactions, to their customers. Specifically, the proposed regulations would establish an alternative consent process permitting custodial digital asset brokers to furnish these statements exclusively in electronic format — without being required to offer paper delivery as an alternative to customers who do not consent or who later withdraw their consent. The proposed regulations are published in the Federal Register at 91 Fed. Reg. 10983 (March 6, 2026) and are open for public comment through May 5, 2026.
The purpose of the proposed regulations is to facilitate compliance requirements for digital asset brokers. Specifically, the proposed regulations provide digital asset brokers — who are required to furnish customers with written statements reflecting information reported to the IRS on Form 1099-DA with an alternative process for obtaining consent from customers to receive these statements electronically, without requiring them to offer a paper delivery alternative.
Background and Modification to Existing Rules
The existing rules under Section 6045 of the Internal Revenue Code require brokers to obtain consent from customers before satisfying their furnishing obligation with an electronically furnished Form 1099-DA statement and also require brokers to furnish Form 1099-DA statements on paper to any customer that does not consent to receiving electronic statements. The proposed regulations would amend the regulations under Section 6045 to provide this alternative electronic consent process. In other words, brokers could potentially move to a fully electronic delivery model without needing to maintain a paper fallback option.
Related Guidance — Notice 2026-4
In addition to these proposed regulations, the IRS and Treasury also issued Notice 2026-4, which requests comments on whether and how the requirements for electronic furnishing of statements on Form 1099-B (Proceeds from Broker and Barter Exchange Transactions), as well as other payee statements, should be modified. Comments on Notice 2026-4 are due by May 23, 2026.
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