Par. 3. Section 1.6045-1 is amended by: 1. Revising and republishing paragraph (k)(1); 2. Adding paragraph headings to paragraphs (k)(3)(i) and (ii); 3. Redesignating paragraph (k)(3)(iii) as paragraph (k)(3)(iv); 4. Adding new paragraph (k)(3)(iii); 5. In newly redesignated paragraph (k)(3)(iv), designating Examples 1 through 4 as paragraphs (k)(3)(iv)(A) through (D), respectively; 6. In newly designated paragraph (k)(3)(iv)(B), removing the language “Assume the same facts as in Example 1” and adding the language “The facts are the same as in paragraph (k)(3)(iv)(A) of this section (the facts in Example 1 )” in its place; 7. In newly designated paragraph (k)(3)(iv)(D), removing the language “Assume the same facts as in Example 3” and adding the language “The facts are the same as in paragraph (k)(3)(iv)(C) of this section (the facts in Example 3 )” in its place; 8. Redesignating paragraph (k)(4) as paragraph (k)(7); 9. Adding and reserving new paragraph (k)(4); and 10. Adding paragraphs (k)(5) and (6). The revisions and additions read as follows:
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(k) * * *
(1) General requirements. A broker or barter exchange making a return of information under this section must furnish to the person whose identifying number is (or is required to be) shown on the return (customer) a written statement showing the information required to be reported under this section and containing a legend stating that the information is being reported to the Internal Revenue Service. If the return of information is not made on magnetic media or in electronic form, this requirement may be satisfied by furnishing to the customer a copy of all Forms 1099 or any successor form for the customer filed with the Internal Revenue Service Center. A statement is considered to be furnished to a customer if it is mailed to the customer using any mail or private delivery service chosen by the broker at the last address of the person known to the broker or barter exchange. See paragraph (k)(5) of this section for rules regarding when certain written statements described in this paragraph (k)(1) may be furnished to a customer in an electronic format.
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(3) * * *
(i) In general. * * *
(ii) Due date for furnishing consolidated reporting statements. * * *
(iii) Electronic furnishing of consolidated reporting statements. A broker may furnish a consolidated reporting statement described in this paragraph (k)(3) in an electronic format in lieu of a paper format if it has met the applicable requirements for consent and other associated rules under either the procedures set forth in the applicable revenue procedures relating to electronic delivery of payee statements generally or by following the rules set forth in paragraph (k)(5) of this section relating to electronic delivery by a broker of payee statements showing the information required to be reported to the IRS on Form 1099-DA, Digital Asset Proceeds From Broker Transactions, or successor form (1099-DA statements), as applicable, to be treated as furnishing each of the statements included in the consolidated reporting statements in a timely manner.
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(4) [Reserved]
(5) Electronic furnishing of 1099-DA statements —(i) In general. A broker required by section 6045(b) and this paragraph (k) to furnish a written statement showing the information required to be reported to the IRS on Form 1099-DA, Digital Asset Proceeds From Broker Transactions, or successor form (1099-DA statement) to a customer may furnish the 1099-DA statement in an electronic format in lieu of a paper format either by following the procedures set forth in the applicable revenue procedures relating to electronic delivery of payee statements or by using a qualified electronic delivery method as defined in paragraph (k)(5)(ii) of this section and meeting the requirements set forth in paragraphs (k)(5)(iii) through (vi) of this section. A broker that meets the requirements set forth in paragraphs (k)(5)(iii) through (vi) of this section and that furnishes a 1099-DA statement using a qualified electronic delivery method described in paragraph (k)(5)(ii)(A)( 1 ) of this section (posting to an electronically accessible specified location) is treated as furnishing the required 1099-DA statement on the last of the following three dates: the date that the broker sends to the customer the required notice by email informing the customer that the customer's 1099-DA statement has been so posted; the date that the broker sends to the customer the requested notice, if requested by the customer in the manner described in paragraph (k)(5)(ii)(A)( 1 ) of this section; and the date that the broker posts the customer's 1099-DA statement to an electronically accessible specified location as described in paragraph (k)(5)(ii)(A)( 1 ) of this section. A broker that meets the requirements set forth in paragraphs (k)(5)(iii) through (vi) of this section and who furnishes a 1099-DA statement using a qualified electronic delivery method described in paragraph (k)(5)(ii)(B)( 1 ) of this section (direct transmittal) is treated as furnishing the required 1099-DA statement on the later of the date that such transmittal is sent to the customer or the date that the broker sends to the customer the requested notice informing the customer that the customer's 1099-DA statement has been transmitted as described in paragraph (k)(5)(ii)(B)( 1 ) of this section, if requested by the customer in the manner described in paragraph (k)(5)(ii)(B)( 1 ) of this section.
(ii) Qualified electronic delivery method. For purposes of this paragraph (k)(5), a qualified electronic delivery method means either of the delivery methods described in paragraphs (k)(5)(ii)(A) and (B) of this section. If the broker has corrected a customer's 1099-DA statement, to be treated as furnishing the corrected 1099-DA statement using a qualified electronic delivery method, the corrected 1099-DA statements must be furnished using the same qualified electronic delivery method by which the original 1099-DA statement was furnished.
(A) Posted to an electronically accessible specified location —( 1 ) In general. A qualified electronic delivery method means the posting of a 1099-DA statement to an electronically accessible specified location, such as the broker's website, mobile device application, or other online platform, if the broker provides the customer with a notice containing the information described in paragraph (k)(5)(ii)(A)( 4 ) of this section that the 1099-DA statement has been posted. Except as provided in paragraph (k)(5)(ii)(A)( 2 ) of this section, this notice must be sent to the customer by email. In addition, the broker must provide the customer with the opportunity to receive another notice from the broker using an additional communication method described in paragraph (k)(5)(ii)(C) of this section if requested by the customer not later than the end of the calendar year to which the 1099-DA statement relates (requested notice).
( 2 ) Undeliverable address. Except in the case of a notice that a corrected 1099-DA statement has been posted to an electronically accessible specified location, the broker must furnish to the customer a notice that an original 1099-DA statement has been posted to the electronically accessible specified location by any mail or private delivery service chosen by the broker within 30 days after an emailed notice is returned to the broker as undeliverable unless prior to that date the broker sends to the customer another email notice to a corrected email address that is not returned as undeliverable.
( 3 ) Corrected 1099-DA statement. If the broker has corrected a customer's 1099-DA statement, the broker must provide the customer with notice that the corrected 1099-DA statement has been posted to the electronically accessible specified location within five business days of such posting. The broker must send this notice to the customer by email. In addition, if the customer asked for a requested notice described in paragraph (k)(5)(ii)(A)( 1 ) of this section, the broker must also send the notice regarding the posting of the corrected 1099-DA statement to the customer using the same additional communication method as that used for the requested notice regarding the original 1099-DA statement. A notice that a corrected 1099-DA statement has been posted to the electronically accessible specified location must be sent to the customer using any mail or private delivery service chosen by the broker if the emailed notice regarding the original 1099-DA statement was returned as undeliverable unless the broker sends within five business days of such posting an email notice regarding the corrected 1099-DA statement to a corrected email address for the customer that is not returned as undeliverable.
( 4 ) Required information for notices. Any notice required by paragraphs (k)(5)(ii)(A)( 1 ) through ( 3 ) of this section must include instructions on how to access, download, and print the 1099-DA statement. The notice must also include the following statement in capital letters, “IMPORTANT TAX RETURN DOCUMENT AVAILABLE.” A notice provided by email must include the foregoing statement on the subject line of the email. A requested notice described in paragraph (k)(5)(ii)(A)( 1 ) of this section must include the foregoing statement prominently in the message of that requested notice.
(B) Direct transmittal —( 1 ) In general. A qualified electronic delivery method also includes the transmittal of a 1099-DA statement directly to the customer by means of being attached to, or otherwise included with, an email containing the information described in paragraph (k)(5)(ii)(B)( 4 ) of this section. A broker that transmits the 1099-DA statement to the customer under this paragraph (k)(5)(ii)(B)( 1 ) must offer the customer the opportunity to request a notice from the broker informing the customer that the customer's 1099-DA statement has been transmitted by email (requested notice). If this notice is requested by the customer by the end of the calendar year to which the 1099-DA statement relates, the broker must send the requested notice to the customer using the customer's choice of additional communication methods described in paragraph (k)(5)(ii)(C) of this section. This requested notice must also contain the information described in paragraph (k)(5)(ii)(B)( 4 ) of this section.
( 2 ) Undeliverable address. Except in the case of a direct transmittal of a corrected 1099-DA statement, the broker must furnish the original 1099-DA statement to the customer using any mail or private delivery service chosen by the broker within 30 days after the email to which the 1099-DA statement is attached is returned as undeliverable unless the broker sends another email to which the 1099-DA statement is attached within five business days of receipt of the undeliverable communication to a corrected email address for the customer that is not returned as undeliverable.
( 3 ) Corrected 1099-DA statement. If the broker has transmitted a corrected 1099-DA statement to a customer that has asked for a requested notice described in paragraph (k)(5)(ii)(B)( 1 ) of this section by the end of the calendar year to which the 1099-DA statement relates, the broker must also provide that customer within five business days of the transmittal with the requested notice of the transmittal of the corrected 1099-DA statement using the same additional communication method as that used for the requested notice regarding the original 1099-DA. The broker must furnish a corrected 1099-DA statement using any mail or private delivery service chosen by the broker if the email to which the original 1099-DA statement was attached was returned as undeliverable unless the broker sends another email to which the corrected 1099-DA statement is attached within five business days of receipt of the undeliverable communication to a corrected email address for the customer that is not returned as undeliverable.
( 4 ) Required information for emails and notices. An email to which a 1099-DA statement is attached and any requested notice required by paragraphs (k)(5)(ii)(B)( 1 ) and ( 3 ) of this section must include instructions on how to access, download, and print the 1099-DA statement. The email to which a 1099-DA statement is attached and the requested notice must also include the following statement in capital letters, “IMPORTANT TAX RETURN DOCUMENT AVAILABLE.” The email to which a 1099-DA statement is attached must include the foregoing statement on the subject line of the email. A requested notice described in paragraph (k)(5)(ii)(B)( 1 ) of this section must include the foregoing statement prominently in the message of that requested notice.
(C) Additional communication method. For purposes of this section, a communication will be treated as sent using an additional communication method if the broker sends the communication to the customer using the customer's choice of physical delivery in the manner described in paragraph (k)(5)(ii)(C)( 2 ) of this section or, to the extent offered by the broker, electronic delivery to the locations in the manner described in paragraph (k)(5)(ii)(C)( 1 ) of this section.
( 1 ) Electronic delivery. A communication is sent by electronic delivery if it is sent to any of the following locations—
( i ) To the customer's cellular phone number;
( ii ) To the customer's in-account messaging system with the broker (including in-application and in-website messaging);
( iii ) To the customer's cellular device in a manner that can be viewed when the customer's account application with the broker is not open;
( iv ) To any other electronic messaging address.
( 2 ) Physical delivery. A communication is sent by physical delivery if it sent by way of any mail or private delivery service chosen by the broker.
(iii) Consent —(A) In general. The customer must positively consent to receive the 1099-DA statement in an electronic format. The consent may be made electronically in any manner that requires the customer to take an explicit action to provide consent, such as by checking a box, clicking a button, or completing a fill-in screen. The customer's consent to receive the 1099-DA statement in an electronic format must relate solely to the 1099-DA statement and be separate from any other consent provided by the customer. In addition, prior to, or at the time of, a customer's consent, the broker must provide to the customer a clear and conspicuous disclosure statement in the manner set forth in paragraph (k)(5)(iii)(C) of this section, containing each of the disclosures set forth in paragraphs (k)(5)(iii)(C)( 1 ) through ( 7 ) of this section.
(B) Change in hardware or software requirements. If the broker intends to adopt a change in the method by which the customer will need to access, download, and print the 1099-DA statement furnished in the electronic format, including the hardware or software the customer will need to conduct these functions, and that change creates a material risk that the customer would need to purchase or otherwise obtain new hardware or acquire or otherwise download new software to access the 1099-DA statement in the new electronic format, before implementing the change, the broker must obtain a new consent to receive the 1099-DA statement in the new electronic format from the customer in the manner described in paragraph (k)(5)(iii)(A) of this section and must provide to the customer a disclosure statement containing updated disclosures of the information set forth in paragraph (k)(5)(iii)(C) of this section through the access period described in paragraph (k)(5)(vi) of this section with respect to that customer.
(C) Disclosure statement. The clear and conspicuous disclosure statement required to be provided to the customer prior to, or at the time of, a customer's consent pursuant to paragraph (k)(5)(iii)(A) of this section, may be provided by the broker in any manner that is part of the consent solicitation, including as a link to another page on the broker's website, mobile device application, or other online platform. Notwithstanding the previous sentence, a broker that transacts with a customer exclusively through one or more physical electronic terminals or kiosks and a broker that effects sales of digital assets for a customer as a processor of digital asset payments as defined in paragraph (a)(22) of this section must also send this disclosure statement to the customer by email or using any mail or private delivery service chosen by the broker within five business days of the customer's explicit action to provide consent as described in paragraph (k)(5)(iii)(A) of this section. Additionally, the broker must provide the customer with the opportunity to receive the disclosure statement using an additional communication method described in paragraph (k)(5)(ii)(C) of this section if requested by the customer at the time of consent. The disclosure statement provided to the customer prior to, or at the time of, a customer's consent must include the information described in paragraphs (k)(5)(iii)(C)( 1 ) though ( 7 ) of this section.
( 1 ) Scope of consent. The disclosure statement must inform the customer that the provided consent shall apply to all 1099-DA statements required to be furnished by the broker.
( 2 ) Hardware and software requirements. The disclosure statement must describe the method by which the customer will need to access, download, and print the 1099-DA statement furnished in the electronic format, including the hardware or software the customer will need to conduct these functions.
( 3 ) Qualified electronic delivery method. The disclosure statement must describe the specific qualified electronic delivery method that the broker will use to furnish the 1099-DA statement to the customer.
( 4 ) Notification method. If the broker will furnish the 1099-DA statements using a qualified electronic delivery method described in paragraph (k)(5)(ii)(A) of this section (posting to an electronically accessible specified location), the disclosure statement must specify that the broker will notify the customer by email that the 1099-DA statement has been posted to the electronically accessible specified location and that the customer may ask for a requested notice described in paragraph (k)(5)(ii)(A)( 1 ) of this section using an additional communication method pursuant to procedures set forth at a location described in paragraph (k)(5)(iii)(C)( 7 ) of this section. The disclosure statement must also provide that the customer may change the additional communication method selected for this requested notice pursuant to procedures set forth at a location described in paragraph (k)(5)(iii)(C)( 7 ) of this section. If the broker will furnish the 1099-DA statements using a qualified electronic delivery method described in paragraph (k)(5)(ii)(B)( 1 ) of this section (direct transmittal), the disclosure statement must offer the customer the opportunity to ask for a requested notice using an additional communication method informing the customer that the customer's 1099-DA statement has been transmitted. The disclosure statement must provide that the customer may change the additional communication method selected for this requested notice pursuant to procedures set forth at a location described in paragraph (k)(5)(iii)(C)( 7 ) of this section.
( 5 ) Consequences of non-consent. If the broker intends to limit the services available to a customer that does not provide consent, such as not effecting future sales for the customer, the disclosure statement must inform the customer of this intention.
( 6 ) Withdrawal of consent. If the broker does not offer the customer the opportunity to withdraw a previously provided consent, the disclosure statement must inform the customer of this intention. Additionally, if the broker does offer the customer the opportunity to withdraw a previously provided consent, the disclosure statement must inform the customer of the procedures the customer must follow to withdraw a previously provided consent and when such withdrawal will be effective.
(7) Further information. The statement must describe the location, such as on the broker's website, mobile device application, or other online platform, where the customer can find the information included in the disclosure statement described in this paragraph (k)(5)(iii)(C) after providing the consent described in paragraph (k)(5)(iii)(A) of this section.
(D) Examples. The following examples illustrate the rules of this paragraph (k)(5)(iii):
( 1 ) Example 1 —( i ) Facts. Broker (B) is a broker that operates a digital asset trading platform and provides hosted wallet services for customers. B's general terms and conditions shown to all customers using B's website or mobile device application include a “check box” which all customers must check to provide their agreement. During calendar year 1 (CY1), to obtain customer consent to receiving 1099-DA statements in an electronic format, B updates its general terms and conditions to include a clear and concise disclosure statement that provides the information described in paragraphs (k)(5)(iii)(C)( 1 ) through ( 7 ) of this section. The updated general terms and conditions include a separate “check box” which all customers must check to provide their consent to receiving 1099-DA statements in an electronic format. Customer J (J) accesses B's mobile device application to make a transaction and checks a “check box” to agree to B's general terms and conditions and also checks the “check box” to consent to receiving 1099-DA statements in an electronic format.
( ii ) Analysis. B's updated terms and conditions disclose to J all the information described in paragraphs (k)(5)(iii)(C)( 1 ) through ( 7 ) of this section. Accordingly, B has satisfied the disclosure requirements set forth in paragraph (k)(5)(iii)(C) of this section. Additionally, by checking a box that relates solely to consenting to receiving 1099-DA statements in an electronic format and that is separate from any other consent provided by the customer, J has positively consented to receiving J's 1099-DA statements in an electronic format as required under paragraph (k)(5)(iii)(A) of this section.
( 2 ) Example 2 —( i ) Facts. Broker (F) is a broker that operates a digital asset trading platform and provides hosted wallet services for customers. During calendar year 1 (CY1), F adds a pop-up screen that is shown to all customers and potential customers using F's website or mobile device application seeking consent from such customers to receiving 1099-DA statements in an electronic format. The pop-up screen includes a clear and concise disclosure statement that provides the information described in paragraphs (k)(5)(iii)(C)( 1 ) through ( 7 ) of this section. The pop-up screen includes an “I agree” button that is separate from any other consent provided by the customer and on which all customers and potential customers must click to provide their consent. Customer R accesses F's mobile device application to make a transaction and clicks on the “I agree” button.
( ii ) Analysis. F's pop-up screen discloses to R all the information described in paragraphs (k)(5)(iii)(C)( 1 ) through ( 7 ) of this section. Accordingly, F has satisfied the disclosure requirements set forth in paragraph (k)(5)(iii)(C) of this section. Additionally, by clicking on the “I agree” button on F's pop-up screen, which is separate from any other consent provided by the customer, R has positively consented to receiving R's 1099-DA statements in an electronic format as required under paragraph (k)(5)(iii)(A) of this section.
(3) Example 3 —( i ) Facts. The facts are the same as in paragraph (k)(5)(iii)(D)( 2 ) of this section (the facts in Example 2 ), except that the disclosure statement includes a statement that F will not effect future sales for customers that do not provide their consent to receive their 1099-DA statements in an electronic format. Additionally, R does not click on the “I agree” button.
( ii ) Analysis. Because R did not click on the “I agree” button on F's pop-up screen, R has not consented to receive the 1099-DA statements electronically. Accordingly, although F may not be obligated to continue the business relationship with R, F must furnish R's 1099-DA statements reflecting any of R's sales previously effected by F in CY1 in a paper format.
(4) Example 4 —( i ) Facts. The facts are the same as in paragraph (k)(5)(iii)(D)( 2 ) of this section (the facts in Example 2 ), except the disclosure statement provided to the customer includes language indicating that the 1099-DA statements will be furnished in XYZ electronic format and a statement that F will not effect future sales for customers that do not provide their consent to receive their 1099-DA statements in an electronic format. In calendar year 2 (CY2), after F effected digital asset sales on behalf of R, F makes the decision to change the software used to furnish the 1099-DA statements from XYZ software to ABC software. This change creates a material risk that existing customers would need to download new software to access the 1099-DA statements in the new ABC electronic format. F adds a revised pop-up screen to solicit a new consent to receiving 1099-DA statements in the new ABC electronic format. This pop-up screen will be shown to all customers and potential customers using F's website or mobile device application. The revised pop-up screen includes a clear and concise disclosure statement that provides the updated information set forth in paragraphs (k)(5)(iii)(C)( 1 ) through ( 7 ) of this section, including a disclosure of the software needed to access the 1099-DA statements in the new ABC electronic format and a statement that F will not effect future sales for customers that do not provide their consent to receive their 1099-DA statements in the ABC electronic format. The revised pop-up screen includes an “I agree” button on which all customers and potential customers must click to provide their consent to receiving 1099-DA statements in an electronic format and does not address any other issues. Customer R does not click on this “I agree” button.
( ii ) Analysis. Because R did not click on the “I agree” button, R has not consented to receive the 1099-DA statements electronically in the ABC format. Accordingly, although F may not be obligated to continue the business relationship with R, F must furnish R's 1099-DA statements reflecting any of R's sales previously effected by F in CY2 in the XYZ format.
(5) Example 5 —( i ) Facts. Broker (K) is a broker that operates physical electronic terminals (kiosks) that customers use to purchase and sell digital assets. During calendar year 1 (CY1), K adds a pop-up screen that is shown to all customers and potential customers using K's kiosk seeking consent from such customers to receiving 1099-DA statements in an electronic format. The pop-up screen includes a clear and concise disclosure statement that provides the information described in paragraphs (k)(5)(iii)(C)( 1 ) through ( 7 ) of this section. The pop-up screen includes an “I agree” button on which all customers and potential customers must click to provide their consent. Customer J visits K's kiosk to make a transaction and clicks on the “I agree” button, which is separate from any other consent provided by the customer and does not address any issues other than consenting to electronic receipt of 1099-DA statements. K does not send the disclosure statement to J by email, mail, or private delivery service. Additionally, K does not provide J with the opportunity to request that the disclosure statement be provided using an additional communication method. J does not engage in any other transactions using K's services.
( ii ) Analysis. Under paragraph (k)(5)(iii)(A) of this section, K is required to provide a clear and conspicuous disclosure statement to the customer prior to, or at the time of, a customer's consent. Under paragraph (k)(5)(iii)(C) of this section, that statement may be provided in any manner that is part of the consent solicitation. K's pop-up that provides the information described in paragraphs (k)(5)(iii)(C)( 1 ) through ( 7 ) of this section satisfies this requirement. In addition, however, because K transacts with J only through K's kiosk, K is also required to send this disclosure statement to J by email, mail, or private delivery service and is required to provide J with the opportunity to request that the disclosure statement be provided using an additional communication method. Accordingly, because K failed to provide this disclosure statement to J by email, mail, or private delivery service, J has not positively consented to receiving J's 1099-DA statements in an electronic format as required under paragraph (k)(5)(iii)(A) of this section.
(iv) Continuing disclosures —(A) In general. The broker must provide a location where the customer can generally find updated versions of the information described in paragraphs (k)(5)(iii)(C)( 1 ) through ( 7 ) of this section through the access period described in paragraph (k)(5)(vi) of this section with respect to such customer. In addition, this location must also include the information described in paragraphs (k)(5)(iv)(B) though (E) of this section. A broker may generally provide the information described and cross-referenced in this paragraph (k)(5)(iv)(A) on the broker's website, mobile device application, or other online platform. Notwithstanding the previous sentence, a broker that transacts with a customer exclusively through a physical electronic terminal or kiosk and a broker that effects sales of digital assets for a customer as a processor of digital asset payments as defined in paragraph (a)(22) of this section must also send this disclosure statement by email, mail, or private delivery service within five business days of the customer's explicit action to provide consent as described in paragraph (k)(5)(iii)(A) of this section. Additionally, if a broker described in the previous sentence updates the information described in paragraphs (k)(5)(iii)(C)( 1 ) through ( 7 ) of this section during the access period described in paragraph (k)(5)(vi) of this section with respect to a customer, the broker must also send updated versions of the information to the customer by email, mail, or private delivery service within five business days of posting the updated version to the broker's website, mobile device application, or other online platform. Finally, to the extent the customer requested at the time of consent or anytime thereafter that the disclosure statement be provided using an additional communication method described in paragraph (k)(5)(ii)(C) of this section, the broker must also send the continuing disclosure statement and any updated versions of the information included on that statement to the customer using the additional communication method requested by the customer.
(B) Updating information. The broker must provide a description of the procedures the customer may use to update the information needed by the broker to deliver to the customer, as applicable, the notice(s) described in paragraph (k)(5)(ii)(A)( 1 ) of this section that the 1099-DA statement has been posted to an electronically accessible specified location, the email to which the 1099-DA statement is attached, or the requested notice described in paragraph (k)(5)(ii)(B)( 1 ) of this section informing the customer that the customer's 1099-DA statement has been transmitted.
(C) Broker information. The broker must provide the broker's contact information in the event the customer has questions about the consent or about the customer's 1099-DA statement.
(D) Additional communication methods for requested notices. The broker must provide a description of the procedures for asking for the requested notices as required to be offered by paragraphs (k)(5)(ii)(A)( 1 ) and (k)(5)(ii)(B)( 1 ) of this section using the customer's choice of additional communication method.
(E) Access procedures for statements posted to an electronically accessible specified location. If the broker will furnish the 1099-DA statements using a qualified electronic delivery method described in paragraph (k)(5)(ii)(A) of this section (posting to an electronically accessible specified location), the broker must provide information about the period of time that the broker will retain the 1099-DA statement and any corrected 1099-DA statement at that electronically accessible specified location. In addition, the broker must provide the date when the 1099-DA statements will no longer be available at the electronically accessible specified location and a description of the procedures for the customer may use to obtain 1099-DA statements and corrected 1099-DA statements that are no longer available at the electronically accessible specified location.
(v) Format. The electronic version of the 1099-DA statement must contain all required information and comply with applicable revenue procedures relating to substitute statements to the customer.
(vi) Access period for statements posted to an electronically accessible specified location. The broker must maintain access to 1099-DA statements posted to an electronically accessible specified location through October 15 of the year following the calendar year to which the 1099-DA statements relate (or the first business day after such October 15, if October 15 falls on a Saturday, Sunday, or legal holiday). The broker must maintain access for the customer to corrected 1099-DA statements that are posted to an electronically accessible specified location through October 15 of the year following the calendar year to which the statements relate (or the first business day after such October 15, if October 15 falls on a Saturday, Sunday, or legal holiday) or the date 90 days after the corrected statements are posted, whichever is later. The broker must retain 1099-DA statements for seven years from the date the 1099-DA statements are required to be furnished under paragraph (k)(2) of this section or (if later) the date that the 1099-DA statements are actually furnished and must make them available to the customer upon request.
(vii) Example of rules for electronic furnishing of consolidated reporting statements —(A) Facts. Customer C has an account with B, a broker, consisting of stock in a single corporation and digital assets. In calendar year 1, C sells the stock and digital assets held within C's account. Under this section, B must furnish a statement reflecting the information reported to the IRS on Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, and Form 1099-DA, Digital Asset Proceeds From Broker Transactions, to C for the sale of stock (1099-B statement) and digital assets (1099-DA statement). B obtains consent from C for C to receive the 1099-DA statement in an electronic format under the rules set forth in paragraph (k)(5)(iii) of this section and meets the requirements set forth in paragraphs (k)(5)(iii) through (vi) of this section and this paragraph (k)(5)(vii) to be treated as furnishing the required 1099-DA statements in a timely manner. B does not obtain consent from C to receive the 1099-B statement in an electronic format under the applicable revenue procedures relating to electronic delivery of payee statements. With respect to calendar year 1, B electronically furnishes the 1099-DA statement and the 1099-B statement to C in a consolidated reporting statement. B does not separately furnish the 1099-B statement to C on paper.
(B) Analysis. Under paragraph (k)(3)(iii) of this section, because B did not obtain consent from C to receive the 1099-B statement in an electronic format under the applicable revenue procedures relating to electronic delivery of payee statements, the electronic furnishing to C of the 1099-B statement in a consolidated reporting statement with the 1099-DA statement does not satisfy B's obligation under this paragraph (k) to furnish a 1099-B statement to C with respect to C's sales of stock. Accordingly, the failure to furnish penalty under section 6722 and § 301.6722-1 of this chapter would apply to B with respect to B's failure to furnish a 1099-B statement to C with respect to C's sales of stock.
(6) Applicability date. The rules of paragraph (k)(5) of this section regarding electronic furnishing of 1099-DA statements apply to 1099-DA statements required to be furnished on or after January 1 of the calendar year immediately following [date of publication of final regulations in the Federal Register ].
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