For the 2026 tax year (returns filed in 2027), the Internal Revenue Service (IRS) is introducing several important changes to the 1099 form reporting framework. These updates affect digital asset transactions, real estate reporting, and payment thresholds for commonly used forms such as 1099-NEC and 1099-MISC.
Understanding these changes early can help businesses, brokers, and payers stay compliant and avoid filing issues during the 2027 filing season.
Below is a practical overview of the key updates and filing reminders for Tax Year 2026.
Table of Contents
Introduction of Form 1099-DA for Digital Assets
One of the most significant updates is the introduction of Form 1099-DA (Digital Assets). This new form is designed specifically for brokers who facilitate transactions involving digital assets, such as cryptocurrency and NFTs.
What Form 1099-DA Covers
- Proceeds from digital asset transactions
- Sales, exchanges, or dispositions of digital assets
- Transactions handled by digital asset brokers
Beginning in 2026, brokers must report:
- Gross proceeds from digital asset sales
- Cost basis information for “covered” digital assets acquired on or after January 1, 2026
If a digital asset is also classified as a security, Form 1099-DA is generally used instead of Form 1099-B, streamlining reporting under a single digital-asset-specific form.
Expanded Digital Asset Reporting on Form 1099-S
Starting in 2026, digital assets used in real estate transactions must be reported on Form 1099-S.
What This Means
- If digital assets are used as consideration in the sale or exchange of real estate
- The transaction must be reported on Form 1099-S
- This applies even when digital assets are only part of the total transaction value
This change reflects the IRS’s broader effort to align digital asset reporting with traditional asset reporting standards.
Increased Reporting Threshold for 1099-NEC and 1099-MISC
Another major update for Tax Year 2026 is the increase in the reporting threshold for:
- Form 1099-NEC (Nonemployee Compensation)
- Form 1099-MISC (Miscellaneous Income)
New Threshold
- The reporting threshold increases from $600 to $2,000
- Applies to payments made after December 31, 2025
This change reduces reporting volume for smaller payments while maintaining reporting requirements for higher-value transactions.
Filing Deadlines to Remember (2025 Tax Year Filed in 2026)
Although the form updates apply to the 2026 tax year, filers should also be aware of the 2026 filing deadlines for the 2025 tax year:
- Form 1099-NEC: Due to the IRS and recipients by February 2, 2026
(January 31 falls on a Saturday) - Forms 1099-B, 1099-S, and 1099-MISC: Due to recipients by February 17, 2026
- E-Filing Deadline: All remaining 1099 series forms must be electronically filed by March 31, 2026
There is no automatic 30-day extension available for Form 1099-NEC.
New IRS Forms in Development
The IRS is also developing additional information-reporting forms expected to be released in mid-2026:
- Form 5498-TA – Trump Account Contribution Information
- Form 1099-LPS – Long-Term Care Premiums Paid Statement
Once released, these forms will introduce new reporting obligations for applicable institutions and payers.
Important Compliance Reminders
- Digital asset disclosure remains mandatory: Taxpayers must answer the digital asset question on Form 1040, regardless of whether a Form 1099-DA is received.
- Backup withholding reporting: If backup withholding was applied to a short sale that did not close by year-end, a 2026 Form 1099-B must still be filed.
- Accuracy matters: Proper classification of payments and transactions is essential to avoid IRS notices and corrections.
Preparing Ahead for 2026 Reporting
With new forms, higher thresholds, and expanded digital asset rules, early preparation is key. Staying informed and using IRS-authorized e-filing solutions can help simplify compliance and reduce filing risks as the 2027 filing season approaches.
Conclusion
The 2026 tax year brings meaningful updates to the 1099 reporting landscape, especially around digital assets, real estate transactions, and payment thresholds. With the introduction of Form 1099-DA, expanded reporting on Form 1099-S, and revised thresholds for 1099-NEC and 1099-MISC, staying informed and prepared will be essential for timely and accurate compliance. Understanding these changes early can help reduce last-minute errors and avoid filing complications during the 2027 tax season.
To simplify the process, many businesses and filers choose to work with reliable, authorized e-filing platforms. Form1099Online is an IRS-authorized Form 1099 e-file provider, offering a secure and compliant way to prepare, validate, and electronically file 1099 forms. Using an IRS-authorized filer can help ensure submissions meet current IRS requirements while saving time as reporting rules continue to evolve.