The U.S. Internal Revenue Service (IRS) has released a draft of the 2026 Form W-9, introducing new compliance measures for digital assets. These provisions mandate U.S. brokers to collect and verify Taxpayer Identification Numbers (TINs) from clients trading cryptocurrencies and NFTs, aiming to improve tax reporting accuracy. The draft also offers guidance for sole proprietors and disregarded entities on TIN submissions to prevent backup withholding due to errors. The updated regulations will be implemented in January 2026, necessitating businesses to revise compliance procedures and ensure accurate TIN information.
IRS Updates Form W-9 to Enhance Digital Asset Tax Compliance
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