- IRS released Notice 2025-33 on June 12, 2025
- Extends transitional relief for digital asset sales brokers
- No backup withholding required for digital asset transactions in 2025 and 2026
- Relief for tax year 2027 reporting is narrower and applies to certain payees
- Backup withholding postponed for digital asset sales through 2026
- For 2027, backup withholding limited to 24 percent of liquidation amount for digital asset trades
- No penalties for calculating and reporting backup withholding in this manner
- Additional year for brokers to obtain certified TINs from preexisting customers for 2027
- Brokers can rely on uncertified TINs if matched with IRS TIN service
- Additional time for brokers to document preexisting customers as exempt foreign persons
- No penalties for failure to file and furnish 1099-DA for 2027 transactions for certain payees
- No backup withholding required for these customers in 2027
- No penalties for failure to file Form 945 for 2027 related to these payees
- Notice extends relief from Notice 2024-56 by postponing backup withholding through 2026
- Continued relief for using uncertified TINs and treating certain customers as exempt for 2027 transactions
- Modified backup withholding calculation for 2027 digital asset-to-asset trades excluding NFTs
Source: sovos.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
