Form 1099-DA 2026 Explained: What You Need to Do Now

If you trade crypto and live in the US, you're about to get a piece of mail that will make your heart skip a beat: Form 1099-DA. This is the IRS's new crypto reporting form, and frankly, it's a game-changer. Let me break down what it means and what you need to do right now.

What Is Form 1099-DA?

Form 1099-DA is the IRS's new standardized reporting form for cryptocurrency transactions. Think of it like a 1099-B for stocks—exchanges report your crypto sales, gains, and losses directly to the IRS.

Here's what gets reported:

• Total proceeds from crypto sales
• Gross proceeds
• Cost basis (if known)
• Capital gains or losses
• The type of transaction (sale, staking, mining, etc.)
• Your personal info and tax ID

2026 is the first full year where this happens at scale. Major exchanges—Coinbase, Kraken, Bitstamp, Gemini—are all filing 1099-DA forms for their US customers.

Who Gets a 1099-DA?

If you're a US citizen, green card holder, or US resident with crypto on a regulated exchange, you're probably getting one. The exchange has already identified you and sent the form to the IRS.

Even if you think your exchange is "small" or "not that regulated," don't bet on it. The IRS has been very aggressive about enforcing crypto reporting requirements.

What You Need to Do Right Now

Step 1: Check your mailbox and email

Brokers are required to send 1099-DA forms by January 31st. If you traded crypto in 2025, you should expect one.

Step 2: Verify the accuracy of the form

Check the reported gains/losses against your own records. Exchanges sometimes get it wrong—missing trades, incorrect cost basis, duplicate reporting.

Step 3: Report it on your tax return

You'll report the 1099-DA data on Form 8949 (Sales of Capital Assets), which feeds into Schedule D and your 1040. More on that below.

Step 4: Keep detailed records

The IRS will cross-check your 1040 against the 1099-DA the broker filed. If the numbers don't match, you'll likely get audited.

How to Report 1099-DA on Your Tax Return

The data goes on Form 8949 (Sales of Capital Assets). If you have:

• One or two simple trades: You can probably do this yourself on TurboTax or similar software.
• Multiple trades across different exchanges: Use crypto tax software (CoinTracking, Koinly, etc.) to generate your Form 8949 automatically.
• Complex situations (wash sales, mining, staking, DeFi): Hire a CPA who specializes in crypto.

The Big Risk: What If Your Records Don't Match the 1099-DA?

This is where it gets serious. If the IRS sees:

• You reported $5,000 in gains but the 1099-DA says $15,000
• You omitted trades entirely from your return
• You reported losses that the exchange didn't recognize

Then you're getting a letter from the IRS. Not a suggestion—an automatic mismatch notice. And that's just the beginning.

The Bottom Line

1099-DA is not optional. The IRS has your data before you file. If you ignore this form or report it incorrectly, the IRS will come after you with interest, penalties, and possibly criminal charges if it looks intentional.

The good news: if you were honest and tracked your trades properly, 1099-DA actually makes life easier. You know exactly what the IRS knows.

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.