What is Form 1099-DA and how do the new broker reporting rules affect my foreign-owned LLC?
I just got an email from Coinbase saying they'll start issuing Form 1099-DA for 2025 transactions. I own my LLC as a non-resident alien and I've been filing W-8BEN with the exchange.
What exactly is Form 1099-DA? Will the exchange withhold taxes on my trades? Do I need to do anything differently now that brokers are reporting to the IRS? I'm worried about getting hit with automatic withholding on every trade when the gains might not even be taxable in the U.S.
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