Describe the problem:
In the US, the IRS recently released the requirements for the transition to per-wallet tracking in order to implement the form 1099-DA with crypto brokers for better transparency starting in 2025. In doing so, all of those people who have been using universal tracking are in a real tough spot here.
https://www.irs.gov/pub/irs-drop/rp-24-28.pdf
Unless if I am mistaken, simply switching to per-wallet tracking would change all of your prior year data, and likely require filing amended returns for everything, which is not a good option whatsoever, while not following the same FIFO per-wallet strategy as these brokers will likely lead to mass tax audits on people. Also not a good scenario. This is a big deal, so I am reaching out for guidance and support in a path moving forward for a date that is rapidly approaching with little to no time to spare, and I wanted to get this discussion started right away.
I struggle with grasping all technical lingo in the document, such as unused cost-basis, to be able to propose potential solutions to the matter.
Which exchange/wallet is this regarding?
All
How did you import data into this wallet?
Various
What have you tried to fix this so far?
To my knowledge, there is no quick fix.
