IRS Form 1099-DA: Fill Out & Download PDF Free
Fill out your 1099-DA for cryptocurrency, Bitcoin, NFT, and digital asset tax reporting online. New IRS form for 2025 tax year — download the official PDF with instructions free.
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What is Form 1099-DA?
The new IRS form for reporting cryptocurrency and digital asset transactions
Form 1099-DA (Digital Asset Proceeds From Broker Transactions) is a brand-new IRS information return that reports the sale, exchange, or disposal of digital assets through a broker. Think of it as the crypto equivalent of Form 1099-B for stock sales.
Starting with 2025 transactions, cryptocurrency exchanges like Coinbase, Kraken, Gemini, and Binance.US are required to send this form to both you and the IRS when you sell digital assets. This marks the end of the "honor system" for crypto tax reporting.
What Are Digital Assets?
The types of assets reported on Form 1099-DA
Included on 1099-DA:
- Cryptocurrencies — Bitcoin, Ethereum, Solana, etc.
- Stablecoins — USDC, USDT, DAI, and other pegged tokens
- NFTs — Non-fungible tokens, digital art, collectibles
- Tokenized securities — Traditional assets on blockchain
- Wrapped tokens — Cross-chain asset representations
- DeFi token swaps through centralized exchanges
NOT on 1099-DA:
- Purchases — Buying crypto isn't taxable
- Wallet transfers — Moving between your own wallets
- HODLing — Simply holding crypto
- Mining/staking rewards — Reported as income separately
- Airdrops — Typically ordinary income
- DeFi activities — Currently exempt (pending guidance)
Who Issues and Receives Form 1099-DA?
Understanding the new reporting requirements
Brokers Who Must Issue 1099-DA:
- Centralized exchanges — Coinbase, Kraken, Gemini
- Trading platforms — Robinhood, Cash App
- Custodial services — BitGo, Anchorage
- Bitcoin ATMs/kiosks — Digital asset kiosks
- Payment processors — BitPay, Coinbase Commerce
NOT Required to Report (Currently):
- DeFi protocols — Uniswap, Aave (no broker)
- Self-custody wallets — MetaMask, Ledger
- Peer-to-peer transfers — No intermediary
- Mining pools — Different rules apply
- Hardware wallet makers — Just software/hardware
Important: Even if you don't receive a 1099-DA (e.g., for DeFi trades), you're still required to report all crypto transactions on your tax return. Keep detailed records!
Form 1099-DA: Complete Box-by-Box Reference
Every field explained — what it means and how it flows to Form 8949
Form 8949 mapping summary: Box 1f (Proceeds) → column (d). Box 1g (Basis) → column (e). Box 1d (Date acquired) → column (b). Box 1e (Date sold) → column (c). Short-term transactions go to Part I; long-term go to Part II. Each 1099-DA typically represents one transaction row on Form 8949.
2025 vs. 2026 Reporting Requirements
The rules are phasing in over two years
2025 Transactions (Filing in 2026)
- Gross proceeds — Mandatory reporting
- Cost basis — Voluntary (may be blank)
- Acquisition date — Voluntary
- Gain/loss calculation — Your responsibility
- Penalty relief — For basis errors
- All assets — Treated as noncovered securities
2026+ Transactions (Filing in 2027+)
- Gross proceeds — Mandatory reporting
- Cost basis — Mandatory for covered securities
- Acquisition date — Mandatory for covered
- Gain/loss calculation — Broker calculates
- Full penalties — For errors and omissions
- Assets purchased 2026+ — Become covered securities
For 2025: If your 1099-DA shows proceeds but no cost basis, you must use your own records to calculate your actual gain or loss. Don't leave this blank on your tax return!
Cost Basis Methods for Crypto: FIFO vs. Specific Identification
How you calculate cost basis directly affects your tax bill — choose carefully
When you sell cryptocurrency, you need a cost basis method to determine which specific coins were sold and what you paid for them. The IRS final broker regulations (effective for assets purchased on or after January 1, 2025 — verify on IRS.gov) address two primary methods:
FIFO — First In, First Out (Default)
- The IRS default if you make no other election
- Treats the oldest coins you own as the first ones sold
- Often results in larger gains if early purchases had a low cost basis
- Simplest to apply — no per-sale decisions required
- Broker may use FIFO unless you instruct otherwise
- Applies across your wallet/account by default unless you make a per-wallet election
Specific Identification (Spec-ID)
- You select which specific units are being sold
- Can minimize gains by identifying high-basis lots first
- Requires adequate records: acquisition date, cost, and wallet/account location
- Must identify the specific units at or before the time of sale
- Per-wallet safe-harbor election: allows Spec-ID on a wallet-by-wallet basis — verify current IRS guidance for exact election procedures
- Recommended for active traders with many lots at different prices
Wash-sale rule: does NOT apply to crypto (as of this writing). Unlike stocks, you can sell Bitcoin at a loss and immediately repurchase it — the loss is generally deductible. Box 1h on your 1099-DA should be blank for digital asset transactions. Note: proposed legislation has sought to extend wash-sale rules to crypto; check IRS.gov for any updates before filing.
For a deeper walkthrough of which method makes sense for your situation, see our complete 1099-DA guide. You can also fill out Form 8949 here once you've determined your basis.
Penalties and Transitional Relief: What You Need to Know
The IRS issued special relief for 2025 — but it applies to brokers, not necessarily to you
The IRS issued Notice 2024-56 and Notice 2024-57 (both in I.R.B. 2024-29) to provide transitional relief as the industry adapts to the new Form 1099-DA requirements. It is critical to understand that this relief is primarily directed at brokers, not individual taxpayers.
Notice 2024-56: Broker Penalty Relief for 2025
The IRS will not impose penalties under IRC sections 6721–6722 against brokers who fail to file accurate and timely Forms 1099-DA for 2025 transactions, provided the broker made good faith efforts to comply and has not been contacted by the IRS regarding an examination. This means your 1099-DA may arrive late or contain errors — you are still required to report all transactions accurately on your own return.
Backup Withholding Postponement (2025)
Under Notice 2024-56, backup withholding under IRC § 3406 is not required on digital asset sales made through brokers during calendar year 2025. This is why Box 4 (Federal Income Tax Withheld) on your 1099-DA should normally be blank for 2025 transactions.
Notice 2024-57: Exempt Transaction Types
Brokers face no penalties for failing to report certain complex transaction types in 2025 and 2026, including: wrapping/unwrapping between blockchains, liquidity provider deposits and redemptions, staking transactions, lending arrangements, short sales of digital assets, and notional principal contracts. The IRS explicitly states these exemptions do not create any inference that such transactions are or are not taxable sales — you may still owe tax on them.
What Transitional Relief Does NOT Cover
These notices relieve brokers from filing penalties — they do not relieve individual taxpayers from accurately reporting their own gains and losses. If you omit crypto income from your return, standard accuracy-related and failure-to-report penalties under IRC §§ 6662 and 6651 continue to apply. Always report all transactions, even if you don't receive a 1099-DA.
What to Do If Your 1099-DA Has an Error
Incorrect forms are common in this first year — here is how to handle them
Step 1: Identify the Error
Compare every field on your 1099-DA against your exchange transaction history. Common errors include: wrong proceeds amount, missing or incorrect cost basis, wrong asset name, duplicate transactions, or transactions that belong to a different account. Keep a written record of what is wrong and why.
Step 2: Contact Your Broker
Notify your exchange or broker in writing as soon as possible. Brokers are required to issue corrected 1099-DA forms. Request the correction in writing and keep copies of all correspondence. Under Notice 2024-56, brokers have additional flexibility in 2025 to file corrections without full penalty exposure.
Step 3: File Your Return Accurately — Not Based on the Erroneous Form
You are legally required to report the correct figures on your return, even if they differ from what the 1099-DA says. Do not simply copy incorrect numbers to avoid a mismatch notice. Instead, report accurate figures on Form 8949 and attach a brief explanation of the discrepancy. Use code "B" or an explanatory note in column (f) of Form 8949 to indicate the adjustment. Keep your supporting documentation in case the IRS sends a CP2000 notice.
Step 4: If You Already Filed with Incorrect Data
If you filed based on an erroneous 1099-DA and then received a corrected version, you may need to file an amended return on Form 1040-X. Consult a tax professional to evaluate whether the difference is material enough to warrant amendment before the statute of limitations runs.
Business and Entity Reporting Obligations
Form 1099-DA rules for companies, partnerships, and self-employed traders
Who Receives a 1099-DA as a Business?
- Sole proprietors & self-employed: Receive 1099-DA if you trade through an account in your SSN/EIN
- Partnerships & LLCs: Receive 1099-DA if the account is in the entity's name; gains flow through to partners on Schedule K-1
- S corporations: 1099-DA is issued to the entity; gains reported on the corporate return and then to shareholders
- C corporations: 1099-DA issued to entity; gains reported on Form 1120
- Trusts and estates: May receive 1099-DA; report on Form 1041
Key Compliance Points for Businesses
- Ensure your broker account is in the correct legal name and TIN matching your business registration
- TIN mismatch between account name and IRS records triggers backup withholding — update your W-9 on file with each exchange
- Crypto used to pay employees or contractors is a separate reporting obligation (W-2 or 1099-NEC); 1099-DA covers only broker-sold disposals
- Businesses accepting crypto as payment must track fair-market value at receipt — that creates basis for future 1099-DA reporting
- Foreign businesses with U.S. operations may have additional FATCA reporting requirements
Businesses that both trade digital assets and accept them as payment face a dual reporting burden: 1099-DA from brokers for sales, and their own internal records for income recognition. Keep these two streams of records separate to avoid double-counting income.
How to Report 1099-DA on Your Tax Return
Step-by-step guide for Form 8949 and Schedule D
Step 1: Collect All 1099-DA Forms
Gather forms from all exchanges where you sold crypto in 2025. You may have multiple 1099-DAs from different platforms. Check each exchange's tax document section.
Step 2: Verify and Calculate Basis
Check that proceeds (Box 1f) match your records. If cost basis (Box 1g) is blank, use your purchase records to determine what you paid. Calculate: Proceeds - Basis = Gain/Loss.
Step 3: Report on Form 8949
Enter each transaction on Form 8949. Separate short-term (Part I) and long-term (Part II) transactions. Use the applicable checkbox code from your 1099-DA.
Step 4: Transfer to Schedule D
Summarize your Form 8949 totals on Schedule D (Capital Gains and Losses). The net gain or loss flows to your Form 1040.
Transactions NOT on Form 1099-DA
Currently exempt from broker reporting (but may still be taxable!)
Wrapping/Unwrapping Tokens
Converting ETH to WETH or similar wrapping operations. Pending IRS guidance on tax treatment.
Liquidity Pool Transactions
Adding/removing liquidity on DeFi protocols. Complex tax implications — consult a crypto tax professional.
Staking Deposits/Withdrawals
Staking operations themselves aren't sales. However, staking rewards are taxable income when received.
Crypto Lending
Lending platforms like Celsius, BlockFi (pending guidance). Interest earned is typically ordinary income.
Mining & Staking Rewards
Not on 1099-DA. These are ordinary income when received — may appear on 1099-MISC instead.
Airdrops
Free tokens received are ordinary income at fair market value when received. Not broker transactions.
Warning: These transactions not being on 1099-DA doesn't mean they're tax-free! You must still report them on your return. Use crypto tax software to track DeFi activity.
Frequently Asked Questions
Common questions about Form 1099-DA
When will I receive Form 1099-DA?
Cryptocurrency exchanges must send Form 1099-DA to you by January 31, 2026 for 2025 transactions. Check your exchange's tax document portal if you haven't received yours by mid-February. Some exchanges may email you when it's ready.
What if my cost basis isn't on the 1099-DA?
For 2025 transactions, cost basis reporting is voluntary. If Box 1g is blank, you must use your own records — purchase confirmations, exchange transaction history, or crypto tax software — to determine your basis. The burden is on you to prove your basis if audited.
Are crypto-to-crypto trades taxable?
Yes. Every trade of one crypto for another (e.g., Bitcoin for Ethereum) is a taxable event. You must calculate gain/loss based on the fair market value at the time of trade. Both transactions should appear on 1099-DA if through a broker.
What if I traded on a foreign exchange?
Foreign exchanges are generally not required to issue 1099-DA to U.S. customers. However, you must still report all transactions on your tax return. Use your exchange transaction history and crypto tax software to generate the required reports.
Do I still need to report if I don't get a 1099-DA?
Absolutely yes. You must report all cryptocurrency sales on your tax return regardless of whether you receive a 1099-DA. This includes DeFi trades, peer-to-peer sales, and transactions on exchanges that don't issue the form. The IRS requires you to answer "Yes" or "No" to the digital asset question on Form 1040.
What's the difference between covered and noncovered securities?
Covered securities: Assets purchased through a broker after January 1, 2026 — broker must report cost basis. Noncovered securities: Assets purchased before 2026 or transferred in — basis reporting is optional. For 2025, all digital assets are noncovered, so basis may not appear on your 1099-DA.
What about NFTs?
NFT sales through brokers are reported on Form 1099-DA. Brokers can use an optional aggregate reporting method for "specified NFTs" — all sales combined on one form. First sales by creators/minters may be reported separately in Box 11c.
What about lost or stolen crypto?
Unfortunately, the Tax Cuts and Jobs Act eliminated most personal casualty loss deductions. Losses from hacks, scams, or lost wallet keys typically cannot be deducted unless connected to a federally declared disaster. Consult a tax professional for your specific situation.
Does the wash-sale rule apply to cryptocurrency?
As of this writing, the wash-sale rule under IRC § 1091 applies to stocks and securities but does not apply to cryptocurrency. This means you can sell Bitcoin at a loss and immediately repurchase it and still claim the loss — a strategy known as "tax loss harvesting." Box 1h on your 1099-DA should be blank. However, proposed legislation has repeatedly sought to extend the wash-sale rule to digital assets. Check IRS.gov or consult a tax advisor before relying on this treatment for your filing.
Should I use FIFO or specific identification for my crypto?
FIFO (First In, First Out) is the IRS default if you make no other election. It treats your oldest coins as the first sold, which often produces larger gains if early purchases had a low cost. Specific Identification (Spec-ID) lets you choose which exact units to sell — often resulting in lower taxes if you identify high-cost-basis lots. To use Spec-ID, you must identify the specific units at or before the time of sale and maintain adequate records (acquisition date, cost, and wallet/account). Consult a crypto tax professional to determine which method is optimal for your situation.
My 1099-DA shows wrong proceeds. What should I do?
Contact your broker immediately and request a corrected 1099-DA in writing. You are legally required to report accurate figures on your return — not the incorrect ones from the form. On Form 8949, report the correct proceeds and basis, and use column (f) to explain the discrepancy. Keep all documentation in case the IRS sends a CP2000 notice asking about the difference between what you reported and what the broker reported. Do not simply copy the incorrect numbers to "match" the form — that results in the wrong tax outcome.
What is Notice 2024-56 and does it help me as a taxpayer?
Notice 2024-56 provides transitional penalty relief for brokers who make good faith efforts to file accurate Forms 1099-DA for 2025 transactions. The IRS also postponed mandatory backup withholding on digital asset sales for 2025. However, this relief does not relieve individual taxpayers from their obligation to accurately report gains and losses. If you don't receive a 1099-DA, you are still required to report all transactions on your own return.
What is a covered vs. noncovered digital asset for 1099-DA purposes?
A covered security is one where the broker is required to report cost basis to the IRS — for digital assets, this means assets purchased through the same broker on or after January 1, 2026. For 2025 transactions, all digital assets are treated as noncovered securities: the broker must report gross proceeds but cost basis is voluntary. Box 5 (Noncovered Security) will generally be checked on your 2025 1099-DA, and Box 1g (Cost Basis) may be blank. Starting with 2026 purchases through the same broker, digital assets become covered and basis reporting becomes mandatory.
I trade on multiple exchanges. Do I get a 1099-DA from each one?
Yes — each U.S. broker where you sold digital assets in 2025 should issue a separate Form 1099-DA. You may receive multiple forms from Coinbase, Kraken, Robinhood, and others. Each form must be reported separately on Form 8949. There is no consolidated 1099-DA across platforms, so you need to track and reconcile all of them. For a full walkthrough, see our complete 1099-DA guide.
Need Help With Your Crypto Taxes?
Fill out IRS Form 1099-DA online and report your digital asset transactions correctly — secure, accurate, and hassle-free.
Related Forms
Forms used alongside 1099-DA for crypto tax reporting
About Form 1099-DA
Form 1099-DA (Digital Asset Proceeds From Broker Transactions) is the IRS's information return for cryptocurrency and digital asset reporting. Introduced for the 2025 tax year, this form requires U.S. digital asset brokers to report sales, exchanges, and disposals of cryptocurrencies, NFTs, stablecoins, and other digital assets to both taxpayers and the IRS — creating the same level of third-party reporting transparency for digital assets that has long existed for stocks, bonds, and traditional securities.
The reporting requirements phase in over two years. For 2025 transactions, brokers must report gross proceeds but cost basis is voluntary. Starting with 2026 transactions, brokers must also report cost basis for "covered securities" — digital assets purchased through the broker after January 1, 2026. IRS Notice 2024-56 and Notice 2024-57 (published in I.R.B. 2024-29) provide transitional penalty relief for brokers during this phase-in period; see the penalties section above for details on what that relief does and does not cover.
For a comprehensive guide on how to use Form 1099-DA for your tax return, including step-by-step instructions for Form 8949 and Schedule D, see our complete 1099-DA guide for 2026. You can also use our tools to compress your PDF tax documents or merge multiple PDF forms before submitting to your tax preparer.