IRS Issues Notice Extending Temporary Relief for Digital Asset Identification Requirements

The IRS has issued a notice extending the temporary relief provided in Notice 2025-7 for an additional year through Dec. 31, 2026. This notice allows eligible taxpayers to use alternative methods for making adequate identification of digital asset units held in the custody of a broker that are sold, disposed of, or transferred. Taxpayers can identify particular units or record standing orders in their books and records rather than communicating identifications to the broker. This extension addresses concerns from custodial brokers who are still building systems to accept specific identification instructions from customers. The relief applies only to digital assets ...