Form 1099-DA Explained: The New Crypto Broker Reporting Form

For years, crypto exchanges reported wildly inconsistent tax information — if they reported anything at all. That era is ending. Form 1099-DA is the IRS's purpose-built reporting form for digital asset brokers, and it changes how exchange activity flows to both you and the IRS. Here's what you need to know before yours shows up.

What Is Form 1099-DA?

Form 1099-DA was created under the digital asset broker reporting rules finalized by the Treasury and IRS. It is the crypto equivalent of the Form 1099-B that stockbrokers have issued for years. The form requires "brokers" — centralized exchanges, certain payment processors, and some hosted wallet providers — to report customers' digital asset dispositions.

The goal is straightforward: give the IRS a clear, standardized record of who is selling crypto and for how much, closing the reporting gap that made crypto a compliance headache for the agency.

What the Form Reports

A 1099-DA includes information such as:

• The type and quantity of digital asset sold or exchanged
• Gross proceeds from each disposition
• Acquisition and sale dates (where known)
• Cost basis (phased in over time — not on the earliest forms)
• Whether the gain or loss is short-term or long-term

The Phased Rollout

The reporting requirements are being introduced in stages, which matters enormously for how useful your first forms will be:

1. 2025 transactions (forms in early 2026): Brokers report gross proceeds only. Your 1099-DA will show what you sold for — but not what you originally paid.
2. 2026 transactions (forms in early 2027): Brokers begin including cost basis for assets acquired in covered accounts, so the form can show actual gain or loss.

Who Issues a 1099-DA?

The rules apply to entities defined as digital asset "brokers," which generally includes:

• Centralized exchanges (e.g., Coinbase, Kraken, Gemini)
• Hosted wallet providers that effect sales
• Certain digital asset payment processors

Decentralized finance (DeFi) front-ends were initially swept into the rules, but those provisions faced significant pushback and legislative challenges. As a result, most peer-to-peer and self-custodial DeFi activity is not captured the way centralized exchange activity is — meaning the burden of tracking that activity falls entirely on you.

When Will You Receive It?

Like other 1099 forms, the 1099-DA must generally be furnished to taxpayers by early February following the tax year. So for 2025 transactions, expect forms by around February 2026. A copy goes to the IRS as well, so the agency can match what you report against what your broker reported.

How to Reconcile a 1099-DA With Your Own Records

Because of the basis gaps and the fact that crypto moves between platforms, you can't simply copy a 1099-DA onto your return. Follow this process:

1. Gather every 1099-DA you receive from each exchange.
2. Match each reported disposition to your own transaction history.
3. Fill in the correct cost basis where the form shows $0 or is blank.
4. Account for transfers in — coins moved from another wallet keep their original basis, not a zero basis.
5. Report everything on Form 8949, using the adjustment columns to correct broker-reported figures.

The Transfer Problem

If you bought Bitcoin on one exchange, moved it to a second exchange, then sold it, the second exchange may not know your original cost basis. Its 1099-DA could report the sale with missing or incorrect basis. This is one of the most common sources of error, and it is entirely on you to fix using your records of the original purchase.

Why Your Own Records Still Matter Most

The 1099-DA is a helpful cross-check, but it is not a substitute for your own complete records. The form may be incomplete, may omit basis, may misclassify holding periods after transfers, and will never capture DeFi or self-custodial activity. The IRS now has more data than ever — which makes accurate self-reporting more important, not less.

Conclusion

Form 1099-DA marks the arrival of real broker reporting for crypto. It brings the asset class in line with stocks — but during the phased rollout, the forms can be misleading, especially when they report proceeds without cost basis. Treat your 1099-DA as a starting point, reconcile it against your own records, and supply accurate basis on Form 8949. Do that, and the new reporting regime works in your favor instead of against you.

This article is for informational purposes only. Tax laws can change; consult a qualified tax professional for personalized advice.