Eligible taxpayers holding digital assets (such as cryptocurrency) through custodial brokers can continue using alternative methods to adequately identify units that are sold, disposed of or transferred — for now. Under Notice 2026-20, the IRS has extended this relief for an additional year. It now applies to transactions made from Jan. 1, 2025, through Dec. 31, 2026. This extension helps prevent taxpayers from being forced to use the default first-in, first-out method while brokers are finalizing systems to process specific identification instructions. If you buy, sell or transfer digital assets, accurate tax reporting and recordkeeping are essential. We can help.
