Crypto-Asset Reporting Framework

Form 1099-DA is a U.S. information return under the Digital Asset Broker Reporting Rules.

CARF is an international reporting and automatic exchange framework that will be implemented through participating jurisdictions.

Unlike CARF where the first deadlines aren't until 2027, Form 1099-DA reporting is already well underway.

Under the US rules, gross proceeds reporting applies to relevant digital asset sales from January 1st, 2025.

Basis reporting applies to certain covered assets for transactions from January 1st, 2026.

It is whether the same product, customer, or transaction may have to be analyzed under CAF CRS 2.0 and for U.S.-connected activity form 1099-DA.

If a group is starting now and also has U.S. exposure, what should it avoid?

It should avoid two extremes, building two completely disconnected processes or forcing Form 1099-DA and CARF into one rule book simply because both relate to digital assets.

So maybe just explain why that is a significant development for anybody who is looking to try and get up to date on their tax of affairs.

Before I answer that, you also have to remember the CAF, the Crypto Asset Reporting Framework.

It is a framework which is adopted by all of the OECD countries.

That's more than 40 countries around the world.

And SARS, by the way, chairs this committee, the Crypto Asset Reporting Framework.

And what that says is from next year, from 1 March of next year, all of the exchanges in these OECD countries, so more than 40 countries, will share data with all of the tax authorities around the world.

Now, SaaS will get data, like they will get a certain template of data from your exchange, like your Luna and Valor or Coinbase or Binance.