Forbes: Cryptocurrency Assets Face 'Turning Point' Tax Year, Complexity Significantly Increases in 2026 Tax Season

As 2026 approaches, cryptocurrency investors are set to face a vastly different tax environment than in previous years. Several digital asset tax experts point out that new regulations and reporting rules will make the 2026 tax season (corresponding to the 2025 fiscal year) a 'high difficulty checkpoint,' with investors facing compliance risks if they lack proper planning.

The most significant change is the introduction of Form 1099-DA. Since 2025, U.S. brokers are required to report cryptocurrency disposal information to the IRS, and this form will enter taxpayers' view on a large scale for the first time in 2026. Due to initial reporting mainly focusing on 'total proceeds' and not necessarily including cost basis, investors who fail to accurately report costs may be automatically treated as 'zero cost,' triggering inquiries.

In addition, tax calculations will shift from the previous 'pooling' method to separate cost calculations by wallet and account. This means that assets between different exchanges and self-custody wallets can no longer be mixed for calculations, making the organization and reconstruction of historical transaction records a one-time but massive task. Users with multiple accounts and frequent participation in DeFi will face particularly high complexity.

Forbes also summarized other key points to note, including:

Users on multiple platforms need to integrate various 1099-DA forms and on-chain data themselves;

Experienced tax professionals with cryptocurrency knowledge are scarce and should be booked early;

Under current laws, cryptocurrency assets are still not subject to stock 'wash sale rules,' but related legislation may change this situation;

Small payments are still not legislatively exempt (de minimis);

The tax attributes of DeFi lending and tokenized securities need to be assessed case by case;

Large cryptocurrency donations typically still require compliance assessment reports.

The report cites industry insiders who believe that 2025 was a true 'turning point' for cryptocurrency tax rules, with its impact set to be concentrated in 2026. Early record organization, understanding of new rules, and collaboration with tax advisors familiar with digital assets will be key for investors to avoid compliance risks. (Forbes)

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