# IRS extends transition relief for digital-asset broker backup withholding and reporting

> Treasury and the IRS extended specified transition relief for brokers implementing Form 1099-DA reporting and backup withholding, including broad backup-withholding relief for 2026 transactions and conditional 2027 relief.

- URL: https://riadefi.com/regulation/2025-06-12-irs-notice-2025-33-digital-asset-broker-relief/
- Posture: Guidance
- Authorities: Internal Revenue Service; U.S. Department of the Treasury
- Event date: 2025-06-12
- Version: 1, published 2026-08-07 (first published 2026-08-07)
- Advisor-relevant: yes

## What changed

Treasury and the IRS extended specified transition relief for brokers implementing Form 1099-DA reporting and backup withholding, including broad backup-withholding relief for 2026 transactions and conditional 2027 relief. The notice does not eliminate customers’ income-reporting or basis obligations.

## Who it affects

- Digital-asset brokers and custodial platforms
- Advisers coordinating client tax records and transfer workflows
- Clients disposing of digital assets

## What is still open

- Broker implementation quality and handling of transferred or noncovered assets
- Future guidance for transactions and participants covered by temporary relief

## What it means for an advisor

- Prepare for mismatches between broker-reported proceeds, client basis records, and wallet histories
- Explain that withholding relief does not excuse client gain, loss, income, or recordkeeping obligations

## Previous interpretation

Notice 2024-56 supplied the earlier, narrower transition framework before this extension and modification.

## Sources

1. [Notice 2025-33: Additional transition relief for digital asset brokers](https://www.irs.gov/irb/2025-27_IRB) · Internal Revenue Service · 2025-06-12


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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.