PayPal has announced that starting with the 2025 tax year, U.S. digital asset brokers, including PayPal, will be required to report cryptocurrency transactions to the IRS. Users who sell or exchange crypto assets within PayPal's wallet will receive a Form 1099-DA by February 15 of the following year. This form will include an annual profit and loss statement and a transaction summary to assist in completing Form 8949 for capital gains or losses reporting. PayPal also advises users to independently track and report any crypto transactions conducted outside its platform.