IRS Proposes Easier eDelivery Rules For Form 1099-DA And It’s A Bigger Deal Than It Looks

If you run a digital asset platform and are still mailing paper 1099s, the IRS has proposed an easier delivery method, provided you can meet electronic delivery requirements.

On March 5, 2026, the Department of the Treasury and the IRS released proposed regulations for how to furnish Form 1099-DA electronically. This proposal, if implemented, would allow electronic furnishing of 1099-DA without using paper delivery as the default choice (subject to enhanced notice, access, and undeliverable notice rules). This would be a meaningful shift and would support IRS digitization efforts better.

The new electronic delivery proposal, along with Notice 2026-4 which invites feedback from brokers on whether the same approach should be extended to Form 1099-B, makes it clear that the IRS is rethinking how their electronic delivery works.

What May Change Under The New Delivery Framework

The current rule for IRS delivery is built around paper delivery. To go electronic, you first have to offer paper delivery and get explicit consent from the recipient and at the same time have the ability to withdraw immediately if someone changes their mind and withdraws their consent.

The IRS acknowledges that this older method does not fit easily into workflows of crypto exchanges and digital brokers who have to process millions of transactions per month.

So, under this new eDelivery proposal, brokers can obtain consent from customers electronically without offering paper as the default. If a customer chooses not to provide consent for eDelivery, a broker could (if clearly disclosed upfront) end the working relationship.

If finalized, this proposal for furnishing Form 1099-DA statements would apply to forms furnished on or after January 1 of the year after the proposal becomes reality.

However, in order to use this proposed delivery method, the platform being used to file tax returns must be adept at electronic delivery. The IRS requires clear notifications when a tax document is ready, continued secure access to previous year’s statements, and documented processes for what happens when a message is not delivered.

Should Form 1099-B Be Included Under This Proposed Framework?

Under Notice 2026-4, the IRS is asking for feedback on whether this eDelivery model should be extended to Form 1099-B. Since for most brokers and digital asset platforms who use both forms, having different delivery methods can create confusion.

Anyone who is affected by these proposed rules can reach out to the IRS on or before May 23, 2026, to share their thoughts and ideas. The IRS wants practical feedback from those most affected to shape their reporting and eDelivery rules, including how consolidated tax statements work or what timelines are realistic for handling undeliverable notices.

What To Do Before New Regulations Are Finalized

Before the new regulations are finalized, check how your eDelivery consent workflow is currently working. See how it captures consent and what happens when consent is withdrawn. You should also see what changes would be required in your workflow if paper is no longer the default option.

Then take a look at your infrastructure and see if it can handle bounced mail and provide an audit trail to keep a record of all the actions taken. Also, check whether users can access previous year’s documents.

If Form 1099-DA eDelivery proposal moves ahead, but Form 1099-B stays under existing rules, you may have to use two delivery methods. Getting your system standardized now prevents any whiplash later.

The Tax1099 View

This new proposal by the IRS and Department of Treasury is a step towards something we have been seeing over the past years: the IRS is no longer treating electronic delivery as an option for filers. It is becoming the default method. But with this move, comes accountability and stricter requirements. For platforms that already have the ability to support eDelivery and consent management, that’s good news.

The harder shift is not technical, it’s a mindset one. Treating tax reporting as an end-of-year task that must be quickly dealt with is not the way to go. And with this proposal, this approach will no longer work.

The best ways to see success in tax compliance require you to use a platform that manages data collection, generates statements, notifies customers and handles corrections at scale. Platforms that have been built for this full lifecycle will have an easier and faster filing season. Tax1099 is built for this end-to-end workflow, helping business owners and tax professionals simplify filing and reduce their last-minute issues.

Get started with Tax1099 today to make your next filing season faster and more predictable.

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