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What is Form 1099-DA and how do the new broker reporting rules affect my foreign-owned LLC?
I just got an email from Coinbase saying they'll start issuing Form 1099-DA for 2025 transactions. I own my LLC as a non-resident alien and I've been filing W-8BEN with the exchange.
What exactly is Form 1099-DA? Will the exchange withhold taxes on my trades? Do I need to do anything differently now that brokers are reporting to the IRS? I'm worried about getting hit with automatic withholding on every trade when the gains might not even be taxable in the U.S.
Related Questions
How do I report cryptocurrency income earned through my foreign-owned U.S. LLC?
I'm a non-resident alien who owns a single-member LLC in Wyoming. The LLC receives crypto payments from clients for freelance consulting work. Some payments are in Bitcoin, some in USDC. I convert most of it to USD through Coinbase within a few days. Do I need to report this crypto income on my U.S. tax return? The LLC is treated as a disregarded entity for Form 5472 purposes, but I'm confused about whether the crypto payments themselves create additional reporting obligations beyond what I'd have with regular USD payments. Also, when I convert BTC to USD, is that a separate taxable event on top of the income?
Does cryptocurrency trading through my foreign-owned LLC create effectively connected income (ECI)?
I'm a foreign national living in Singapore and I own a single-member LLC in Delaware. The LLC's main activity is actively trading cryptocurrencies — buying and selling on U.S. exchanges like Coinbase and Kraken, sometimes dozens of trades per day. I've read that trading in stocks and securities for your own account generally does NOT create ECI for foreign persons under the IRC Section 864(b)(2) safe harbor. But does this safe harbor apply to crypto? Crypto isn't technically a "security" or "commodity" under traditional definitions. If crypto trading does create ECI, I'd owe U.S. income tax on all my trading profits. That would be a huge deal. Can anyone clarify the current IRS position?
What are the current IRS crypto reporting requirements for foreign owners of U.S. LLCs?
I keep hearing about new IRS rules for cryptocurrency reporting, and I'm overwhelmed trying to figure out what applies to me specifically as a non-U.S. person who owns a single-member LLC. I know about Form 5472 already but I'm talking about crypto-specific reporting. The digital asset question on tax returns, the new broker reporting rules, Form 8949 — which of these apply to foreign-owned disregarded entities? Is there a comprehensive overview somewhere? My LLC holds some Bitcoin and Ethereum, does occasional trades, and receives some crypto payments from clients. I just want to understand the full scope of what I need to report.
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