Short answer: Form 1099-DA is the IRS information return US crypto brokers use to report your sales. Brokers must report gross proceeds for transactions on or after 1 January 2025, so first forms arrive in early 2026. Cost basis reporting follows for covered transactions on or after 1 January 2026. You do not file the form itself — you report from it on Form 8949, correcting any basis the broker could not know.
What is Form 1099-DA?
Form 1099-DA (Digital Asset Proceeds From Broker Transactions) is the IRS’s new information return for crypto brokers, created under the Infrastructure Investment and Jobs Act and finalized in 2024 regulations.
When does 1099-DA reporting start?
The timeline matters: brokers must report gross proceeds for sales on or after 1 Jan 2025 — so expect your first forms in early 2026. Cost basis reporting follows for covered assets acquired and sold on the same platform on or after 1 Jan 2026. DeFi and non-custodial broker rules were revised after Congress disapproved the DeFi broker regulations in 2025, so custodial exchanges are the first filers.
What should I do with a 1099-DA?
- Don’t file it — report from it. Enter each sale on Form 8949, using the 1099-DA figures and correcting basis where the form says “basis not reported”.
- If you moved coins in from another wallet, your exchange doesn’t know your basis — expect gaps and keep your own records.
- A mismatch between your return and the IRS copy is a common trigger for a CP2000 notice, so reconcile before you file, not after.
Key point: 1099-DA changed reporting, not the underlying tax. You owed tax on crypto sales long before this form existed.
US brokers must now report your crypto sales to the IRS. Gross proceeds are reported for transactions on or after 1 January 2025, and cost basis for covered transactions on or after 1 January 2026. You may receive a 1099-DA from exchanges like Coinbase, Kraken, and Gemini in early 2026 — and you owed tax on these sales even before the form existed.
Frequently asked questions
What is Form 1099-DA?
Form 1099-DA (Digital Asset Proceeds From Broker Transactions) is the IRS information return US crypto brokers use to report your sales — to you and to the IRS. It was created under the Infrastructure Investment and Jobs Act and finalized in 2024 regulations.
When does 1099-DA cost basis reporting start?
Cost basis reporting starts for covered transactions on or after 1 January 2026. Gross proceeds are already reported for transactions on or after 1 January 2025, so the first forms arrive in early 2026.
What if my 1099-DA is wrong or has no basis?
If you moved coins in from another wallet, your exchange doesn’t know your basis — expect gaps and keep your own records. Report the correct figures on Form 8949, and reconcile before you file: a mismatch between your return and the IRS copy is a common trigger for a CP2000 notice.
Did 1099-DA change how much tax I owe?
No. 1099-DA changed reporting, not the underlying tax. You owed tax on crypto sales long before this form existed.
Related guides
- How to Report Crypto on Your Taxes: Form 8949 & Schedule D, Step by Step
- 10 Crypto Tax Mistakes That Trigger IRS Notices
- How Crypto Is Taxed in the US: The Complete 2026 Beginner’s Guide
Sources
- IRS final regulations on digital asset broker reporting (2024) — IRS.gov digital assets
- IRS Form 1099-DA instructions
- Infrastructure Investment and Jobs Act, Section 80603
- Primary guidance: IRS.gov and IRS digital assets guidance
This guide is general education only — not tax, legal or financial advice. Verify with the source authority and a qualified professional before filing.
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