New IRS 1099-DA Rules: Prepare NOW for the 2025 Crypto Tax Changes!
There’s a lot of buzz around the IRS’s new 1099-DA regulations, and for good reason.
These changes are going to impact how crypto traders calculate their gains starting in 2025, and if you don’t prepare now, you could face some major headaches.
What’s Changing?
In the past, most crypto traders have used various methods to calculate gains—Highest In, First Out (HIFO) being one of the most popular.
Some tax services give it cute names like "minimization" or "optimization," but it’s essentially HIFO across your entire wallet or even across multiple wallets.
But that’s about to change. Starting January 1st, 2025, for the 2025 tax year, the IRS is limiting traders to First In, First Out (FIFO) on a by-account basis.
That means you can no longer use multi-wallet or universal approaches.
This shift to FIFO on each account separately is a big deal and can seriously change how you report your crypto gains—potentially leading to higher taxable income.
What’s the Impact?
This is a radical shift in how you’ll need to handle your crypto tax calculations, and if you’re not careful, it could cause a lot of pain when tax time comes.
But there’s a way to protect yourself and avoid the confusion: our Safe Harbor Allocation Plan.
What Is the Safe Harbor Allocation Plan?
The Safe Harbor Plan offers you a fresh start for 2025 and beyond.
Instead of combing through years of complicated transaction histories, you’ll summarize your existing open cost basis positions and start fresh with that.
No more digging through old records from 2024 and earlier—just a clean slate for gain calculations going forward.
And here's why this is so important: if the IRS audits you for any previous years (before 2025), they’ll use FIFO on a by-account basis.
By signing up for the Safe Harbor Plan, you protect yourself from the IRS using this more aggressive recalculation method against you.
It’s a simple way to avoid potential penalties and extra taxes.
Why You Need to Act Now
The IRS changes are coming whether you’re ready or not, but the Safe Harbor Plan can help ensure your preparation.
By signing up, you shield yourself from IRS recalculations that could cost you big. It’s free, it’s simple, and it’s going to save you from a lot of potential headaches.
Get Started For Free Today!
Signing up for the Safe Harbor Plan is quick and easy.
Head over to CryptoTaxAudit.com/1099 to get started.
Once you’re on the list, we’ll keep you updated with all the information you need to stay compliant and get the best advantage for your crypto tax situation.
If you have any questions, feel free to contact us directly at CryptoTaxAudit.com, and we’ll help you navigate these changes.
Don’t wait—get ahead of the 2025 tax changes today. Your future self will thank you.
