🧾 What Form 1099‑DA Is

Form 1099‑DA (“Digital Asset Proceeds From Broker Transactions”) is a new IRS information return that brokers must issue for certain crypto dispositions starting with the 2025 tax year (statements mailed in early 2026). It’s the crypto equivalent of the stock‑market Form 1099‑B, designed to help the IRS track gains and ensure compliance.

• It reports gross proceeds from digital asset sales and exchanges that a broker (typically a custodial exchange) effected on your behalf.
• For 2025, brokers are not required to report cost basis on Form 1099‑DA—but they may voluntarily include it without penalty.
• Beginning January 1, 2026, brokers must report both gross proceeds and cost basis for “covered securities” and many other asset types on subsequent 1099‑DA forms.

📅 When You’ll Receive It

• For 2025 transactions, expect Form 1099‑DA from custodial brokers by mid‑February 2026 (similar to other 1099s).

📌 Who Must Issue a 1099‑DA?

Entities that qualify as digital‑asset brokers under IRS rules must file Form 1099‑DA. This includes many centralized exchanges, hosted wallet providers, custodial platforms, and certain payment processors that take possession of digital assets and execute your trades.

❗ Decentralized exchanges (DEXs), non‑custodial wallets, and platforms without U.S. reporting obligations usually do not issue 1099‑DA forms — but you are still required to report your crypto activity yourself on your tax return.

📘 What Goes on Form 1099‑DA — And What Doesn’t

✔ What Is Reported

• Gross proceeds from crypto sales and exchanges (crypto‑for‑crypto and crypto‑for‑fiat).
• The form lists the date of sale, asset sold, and proceeds received from each transaction.

⚠ What Is Not Reported (by Default on 2025 Forms)

• Cost basis (you’ll usually have to calculate this yourself for Form 8949/Schedule D).
• Most DeFi activity, such as staking income, lending, liquidity pool moves, and non‑custodial wallet trades — these remain your responsibility to track and report.

This means a 1099‑DA doesn’t replace your obligation to track cost basis or report all taxable events — it only provides an informational starting point.

🧾 How to Prepare Before Tax Season

🧰 1. Consolidate Your Records

Gather transaction history from all crypto sources:

• Centralized exchanges
• Self‑custody wallets
• DeFi platforms
• NFT marketplaces

Track:

• Buy dates and prices
• Transfer‑in/‑out history
• Fees paid (gas, exchange fees)

This foundation lets you calculate accurate cost basis when Form 1099‑DA lacks it.

🧮 2. Match Your 1099‑DA With Your Records

When you receive your 1099‑DA:

• Compare gross proceeds listed on the form to your own records.
• Use your cost basis tracking to compute capital gains/losses for each transaction on Form 8949 and Schedule D.

Even if the form doesn’t include basis, the IRS has the 1099‑DA copies in their system — so mismatches could trigger an audit notice.

🧠 3. Use Crypto Tax Software

Crypto tax tools like CoinLedger help you:

• Import 1099‑DA data
• Reconcile transactions from multiple exchanges and wallets
• Calculate cost basis using methods like FIFO/LIFO/HIFO
• Generate Form 8949 and Schedule D automatically

This integration becomes especially valuable when brokers don’t report basis on 1099‑DA.

📊 4. Prepare for the 2026 Changes

Starting tax year 2026 and beyond:

• Brokers must begin reporting cost basis on 1099‑DA for covered assets.
• This will make your cost basis easier to source directly from brokers — but thorough recordkeeping will still be essential for non‑custodial activity or assets acquired off the reporting platform.

📌 Key Takeaways

✅ Form 1099‑DA is here — for the 2025 tax year, brokers now issue it to taxpayers and the IRS.
✅ It reports gross proceeds — but not cost basis on 2025 forms — meaning you must calculate gains/losses yourself.
✅ Not all platforms issue 1099‑DAs. If you traded on DEXs or self‑custodial wallets, you still must report activity.
✅ Accurate recordkeeping and crypto tax software are critical to avoid mismatches with IRS data.
✅ Starting in 2026, reporting becomes more complete — but preparation now will make future filings easier.