From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets S3E3 - Understanding New Crypto Reporting Requirements with Phil Gaudiano
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Feb 26, 2025 
Phil Gaudiano, co-founder of Chainwise CPA and Chainwise Crypto Academy, shares his expertise on the evolving landscape of crypto tax regulations. He dives into the upcoming 1099 reporting requirements, explaining how they will impact both centralized and decentralized platforms. Phil discusses the complexities of wallet-by-wallet reporting and offers practical strategies for year-end tax loss harvesting and charitable giving. Tune in for essential insights to navigate the challenges of cryptocurrency taxation!
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New 1099 DA Reporting Challenges
- The new 1099 DA form will require reporting of gross proceeds for all crypto transactions starting 2025.
- This aims to simplify reporting but will likely produce incorrect basis info requiring adjustments.
Centralized vs Decentralized Reporting
- IRS requires centralized exchanges to report crypto transactions starting 2025 but deferred DeFi and DEXs reporting.
- This delay acknowledges DeFi's lack of user info and preserves its permissionless ethos for now.
DeFi's Identity Challenge
- DeFi platforms lack user identity, making tax reporting extremely difficult without changing their core design.
- This creates huge challenges for IRS enforcement and the DeFi industry's future compliance.