How Lock Periods Prepare You for Form 1099-DA Transition
New IRS requirements are coming in 2026. Lock Periods make the shift painless.
Starting in 2026, the IRS will require brokers to report cryptocurrency transactions using Form 1099-DA. For US taxpayers, this introduces a major change: you'll need to move from universal tracking (where you track crypto across all wallets as one pool) to per-wallet tracking (where each wallet is treated separately).
This shift creates a problem. If you've been filing returns using universal tracking and FIFO for years, switching to per-wallet tracking for 2025 could retroactively alter your historical calculations, potentially changing the numbers on returns you've already submitted.
That's where Lock Periods become essential.
Lock the past, adapt to the future
Lock Periods allows you to freeze your 2024 and prior tax years exactly as filed, with universal tracking, FIFO, or whatever accounting method you used. Once locked, those calculations can't change, regardless of the settings you apply going forward.
Then, starting with your 2025 tax year, you switch to per-wallet tracking to comply with the new 1099-DA requirements. Your past filings stay intact. Your current year aligns with IRS rules. No conflicts, no anxiety, no accidental amendments.
Here's what this looks like in practice:
- Lock 2024 and earlier: Secure your historical returns with universal tracking and your chosen inventory method. Those numbers are now permanent and will remain unchanged, as you filed them.
- Switch for 2025: Update to per-wallet tracking for the current year to align with the new reporting standards. Your locked periods remain untouched.
- File with confidence: Your 2025 return complies with Form 1099-DA requirements while your historical records stay audit-proof and unchanged.
Why this matters now
The Form 1099-DA transition isn't optional. Brokers will begin issuing these forms for 2025 activity in early 2026, and your reporting method must match. But you shouldn't have to sacrifice the integrity of your past filings to comply with new rules.
Lock Periods gives you both: the flexibility to adapt your current strategy and the certainty that your tax history won't be rewritten in the process.
Before the 2025 tax year begins, lock your completed periods. Head to Settings > Lock Periods, secure your 2024 and prior years, and set yourself up for a smooth transition.
Log in to prepare for Form 1099-DA, or sign up to get started.
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