IRS Extends Crypto Cost-Basis Relief Through 2026 After Russian Tax Reforms

The IRS's Notice 2026-20 extends temporary cost-basis relief for broker-held digital assets through Dec. 31, 2026, allowing mismatches between Form 1099-DA reports and taxpayer records, which could spur compliance issues and alter Bitcoin trading strategies ahead of mandatory broker-method alignment (default FIFO) from Jan. 1, 2027. This U.S. development follows Russia's May 1 approval of Tax Code amendments regulating digital currencies, exempting VAT on certain foreign digital rights and services, mandating brokers as tax agents for individuals, allowing same-period gain/loss offsets without carryforwards, and applying preferential corporate rates to ruble-denominated digital assets on organized markets. Together, these actions enhance global crypto tax clarity but heighten intermediary burdens and limit loss harvesting for BTC holders.