TMTPOST -- The Internal Revenue Service, the U.S. federal tax-collecting agency, delayed the implementation of new crypto tax reporting requirements until January 1, 2026, giving digital asset brokers an additional year to adapt to the regulatory changes.

The postponed rules focus on determining the cost basis for crypto assets held in centralized platforms. Under the new regulations, if investors don’t specify an accounting method, transactions will default to a First-In, First-Out (FIFO) approach.

The delay responds to concerns from tax experts about centralized finance brokers’ readiness to comply with the changes. Many brokers lack infrastructure to support specific identification methods that allow investors to choose which crypto units to divest.

The reporting requirements, originally scheduled for 2025, would have mandated brokers to report cost basis for crypto assets sold on centralized platforms. The one-year extension allows investors more time to strategize their accounting methods, while offering brokers more time to create systems for the new reporting obligations.

In June 2024, the U.S. Treasury Department's IRS introduced a new tax regime for crypto transactions and delayed rules for DeFi and non-hosted wallet providers.

In December, the IRS finalized tax reporting rules for DeFi brokers, aligning them with traditional asset reporting to aid compliant taxpayers.