PayPal outlines new tax reporting requirements for crypto users
PayPal will issue Form 1099-DA to users reporting digital asset dispositions starting in tax year 2025.Summary
PayPal has confirmed that it will adhere to new IRS rules requiring tax reporting for cryptocurrency users. Beginning with the 2025 tax year, PayPal must report proceeds from digital asset dispositions, including sales or exchanges of crypto assets and its stablecoin, PYUSD, to the IRS using Form 1099-DA, which will be sent to affected users by February 15th annually. The IRS introduced Form 1099-DA to standardize the tracking and reporting of crypto gains or losses by brokers. Additionally, PayPal will issue Form 1099-MISC for crypto bonuses or prizes exceeding $600 in tax year 2025, increasing to $2,000 for 2026 before inflation adjustments begin in 2027. Users receiving crypto payments for goods and services above annual thresholds will receive Form 1099-K by January 31st.
(Source：Crypto Briefing)