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Nov 21, 2025 - IRS Launches New Form to Track and Report Crypto

• Starting with the 2025 tax year, the Internal Revenue Services (IRS) is rolling out a new form called 1099‑DA, part of the IRS's effort to bring more clarity to the growing crypto space. A 1099-DA reports transactions involving digital assets like cryptocurrencies and NFTs. This form will be issued by custodial brokers - Coinbase, PayPal, Robinhood - to show the gross proceeds from trades, exchanges, redemptions, and NFT sales. Beginning in 2026, brokers will also “covered assets,” meaning assets acquired on or after January 1, 2026 and held on the same platform. Non-custodial platforms, such as decentralized exchanges or wallets that you fully control yourself, won’t be issuing 1099‑DAs, leaving it up to users to track and report their activity. A 1099‑DA gives you a snapshot of your transactions, but it doesn’t replace the need to keep careful records of your purchases, sales, and gains for accurate tax filing.
• Automation and AI are transforming how tax firms get work done, cutting out repetitive tasks and boosting accuracy, according to a recent The Future of Tax Automation webinar from Thomson Reuters. Nearly 80% of tax professionals believe AI will have a major impact on their industry within the next five years, and more than half of firms are already seeing returns from the investments they’ve already made. New tools like optical character recognition, automated verification, and generative AI can scan documents and pull out key data, cross-check for errors, and create detailed summaries. In addition, the Webinar estimated that AI would save accounting pros about 5 hours of busy work per week for a per employee added value to the organization of $24,000. The shift towards automation is especially important as accounting firms face heavier workloads and staffing shortages.

• CPA credentialing is declining across all company sizes, reflecting a shift in corporate hiring practices and licensing trends, according to INSIDE Public Accounting. Between 2020 and 2024, the average amount of corporate staff that held a CPA license dropped from 56% to 48%. Larger companies report even lower CPA licensing among staff at 41%. The trend is driven by fewer accounting graduates taking the time to complete the 150 hours of required training for a license, as well as firms expanding into non-traditional markets that require different skill sets than traditional accounting. Several states have created different pathways to CPA licensure - such as Ohio, Georgia, and Minnesota - acknowledging the existing process is too expensive and time-consuming. Alternative licensing pathways typically involve graduation with an accounting degree combined with experience in the field and passing a CPA exam.
• The Internal Revenue Services (IRS) cut more than 30% of its auditors in early 2025 due to buyouts and layoffs from the Department of Government Efficiency. The cuts disproportionately affected revenue agents - those conducting audits and going after possible tax cheats - with the IRS shedding 3,600 of those jobs and significantly impacting the government’s ability to collect tax revenue. A report from the Treasury Inspector General for Tax Administration found that auditors found about $32 billion worth of additional tax revenue in 2023. Auditors make the agency about $6 for every $1 spent on high-income taxpayer audits, per the National Bureau of Economic Research. So many auditors being cut loose risks revenue losses for the government if tax evaders know they are not being scrutinized as before. The Yale Budget Lab forecast a loss of $159 billion over 10 years if staff cuts reach 18,000 IRS employees.