The IRS will begin taxing DeFi in 2027, and platforms will need to start collecting and reporting data from 2026.

BlockBeats News, December 28th, according to financefeeds reports, the Internal Revenue Service (IRS) has issued final regulations requiring brokers to report digital asset transactions, bringing decentralized finance (DeFi) platforms into the existing tax framework.

This rule will take effect in 2027, requiring brokers to disclose transaction details, including total proceeds and taxpayer information. Brokers must begin collecting and reporting data starting in 2026. The IRS estimates that between 650 and 875 DeFi brokers will be affected, potentially impacting up to 2.6 million taxpayers.

These regulations primarily target "transaction settlement service providers," such as decentralized exchange platforms (DEX) that facilitate digital asset transactions. According to the IRS, these platforms act as intermediaries, and classifying them as brokers will help ensure tax compliance.