# IRS basis-identification relief takes effect for digital assets held with brokers

> Temporary relief took effect allowing eligible taxpayers during 2025 to make adequate unit identification for broker-custodied digital assets through specified records or standing instructions when broker systems could not support the new identification rules.

- URL: https://riadefi.com/regulation/2025-01-01-irs-notice-2025-7-digital-asset-basis-identification/
- Posture: Guidance
- Authorities: Internal Revenue Service; U.S. Department of the Treasury
- Event date: 2025-01-01
- Effective: 2025-01-01
- Version: 1, published 2026-08-07 (first published 2026-08-07)
- Advisor-relevant: yes

## What changed

Temporary relief took effect allowing eligible taxpayers during 2025 to make adequate unit identification for broker-custodied digital assets through specified records or standing instructions when broker systems could not support the new identification rules. The relief was transitional and did not eliminate basis substantiation or gain and loss reporting.

## Who it affects

- Taxpayers holding digital assets with custodial brokers
- Advisers managing tax-aware digital-asset transactions
- Digital-asset brokers and tax-reporting providers

## What is still open

- Whether client and broker records will reconcile under the transition methods
- Application of the post-2025 broker-communication and default-ordering rules

## What it means for an advisor

- Preserve contemporaneous wallet, account, lot, transfer, and standing-order records for 2025 transactions
- Coordinate tax-lot instructions with broker functionality and qualified tax professionals before dispositions

## Previous interpretation

Without the temporary relief, taxpayers risked default ordering or inadequate identification when broker technology could not accept the required instructions.

## Sources

1. [Notice 2025-7 — Temporary Relief Under Section 1.1012-1(j)(3)(ii)](https://www.irs.gov/pub/irs-irbs/irb25-05.pdf) · Internal Revenue Service · 2024-12-31 · effective 2025-01-01


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.