IRS Form 1099-DA Explained – The New Crypto Tax Form for 2026 Filing

Form 1099-DA is the IRS's new standardized crypto tax reporting form, effective for 2025 transactions. Here is everything you need to know.

What Is Form 1099-DA?

Form 1099-DA (Digital Asset Proceeds from Broker Transactions) is the IRS form that crypto brokers (exchanges, custodians) must file for each customer who sold digital assets during the year. It is the crypto equivalent of the 1099-B used for stock sales.

What 1099-DA Reports

• Gross proceeds from each sale or exchange
• Date of acquisition and sale
• Cost basis (for covered transactions where the broker tracked it)
• Whether gain is short-term or long-term
• The digital asset sold

Who Must File 1099-DA?

Brokers required to file include:

• Centralized exchanges (Coinbase, Kraken, Gemini, Binance.US, Robinhood, etc.)
• Custodial wallet providers
• Certain payment processors that handle crypto

DeFi protocols and non-custodial wallets are not currently required to file 1099-DA (separate regulations pending).

1099-DA vs Old 1099-B/1099-MISC

Before 1099-DA, exchanges used 1099-B (inconsistently) or 1099-MISC. The new 1099-DA standardizes reporting and adds cost basis tracking requirements – making it much easier for the IRS to spot unreported gains.

What to Do With Your 1099-DA

1. Compare the reported proceeds against your own records
2. Verify cost basis figures (some may show "missing" or $0 for older purchases)
3. If cost basis is missing, reconstruct using your purchase records
4. Import into crypto tax software for full Form 8949 generation
5. Do not simply copy 1099-DA onto your return without verifying accuracy

What If Your 1099-DA Is Wrong?

Errors in 1099-DA are common in the first years. If the reported proceeds or basis is incorrect:

• Contact the exchange to request a corrected form
• You can still file your taxes with your correct figures – attach an explanation
• The IRS may send a CP2000 notice if your return does not match – respond with documentation

The IRS Matching Problem

The IRS will match 1099-DA proceeds against your reported income. If you do not report transactions that appear on a 1099-DA, expect a notice. Even if your gains are zero (because cost basis equals proceeds), you must report the transaction on Form 8949.

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