The Internal Revenue Service delayed new crypto tax reporting requirements until January 1, 2026, giving digital asset brokers an additional year to prepare for the regulatory changes.

The postponed rules focus on determining the cost basis for crypto assets held in centralized platforms. Under the regulations, if investors don’t specify an accounting method, transactions will default to a First-In, First-Out (FIFO) approach.

The delay addresses concerns from tax experts about centralized finance brokers’ readiness to implement these changes. Many brokers currently lack infrastructure to support specific identification methods that allow investors to choose which crypto units to sell.

The reporting requirements, originally scheduled for 2025, would have mandated brokers to report cost basis for crypto assets sold on centralized platforms. The extension allows investors more time to strategize their accounting methods, while giving brokers additional time to develop systems for the new reporting obligations.