1099-DA Crypto Tax Form 2026
✍️ Author Information
Written by: Davit Cho
Crypto Tax Specialist | CEO at JejuPanaTek (2012~) | Patent Holder (Patent #10-1998821)
7+ years crypto investing experience since 2017 | Personally filed crypto taxes since 2018
LinkedIn: linkedin.com/in/davit-cho-crypto
Email: davitchh@gmail.com
Blog: legalmoneytalk.blogspot.com
Last Updated: December 26, 2025 | Fact-Checked: Based on IRS Publications & Official Guidelines
📋 Table of Contents
2026 marks a major shift in how the IRS tracks cryptocurrency transactions. For the first time ever, crypto exchanges and brokers are required to send Form 1099-DA to both investors and the IRS — creating a paper trail that didn't exist before.
When I think about it, this is the biggest change to crypto tax reporting since the IRS first declared crypto as property in 2014. If you've been flying under the radar, those days are officially over. The IRS will now know exactly what you traded, when you traded it, and potentially how much you made.
This comprehensive guide covers everything you need to know about Form 1099-DA — what it is, who receives it, what information it contains, and how to use it correctly when filing your 2025 tax return in 2026.
📄 1099-DA Quick Facts 2026
📅 First Year Required: 2026 (for 2025 transactions)
📬 Mailing Deadline: January 31, 2026
🏢 Who Sends: Exchanges, brokers, custodians
⚠️ DeFi/Self-Custody: NOT included (you must self-report)
📄 What Is Form 1099-DA?
Form 1099-DA (Digital Assets) is a brand new IRS tax form specifically designed for reporting cryptocurrency and digital asset transactions. It's the crypto equivalent of Form 1099-B that stock brokers have used for decades to report securities transactions.
The form was created as part of the Infrastructure Investment and Jobs Act of 2021, which expanded the definition of "broker" to include cryptocurrency exchanges. After years of delays and industry pushback, the IRS finalized the regulations in 2024, making 2026 the first year these forms will be issued.
Before 1099-DA, crypto exchanges issued Form 1099-K or 1099-MISC inconsistently, and often only reported gross proceeds — not the detailed transaction-by-transaction data the IRS wanted. Many exchanges issued nothing at all. This made it easy for crypto investors to underreport or completely ignore their tax obligations.
The new form changes everything. It requires brokers to report detailed information about each transaction, including proceeds, cost basis (when available), and gain or loss calculations. The IRS receives a copy, your state tax agency may receive a copy, and you receive a copy.
📄 1099-DA vs Previous Forms
| Form | What It Reported | Limitation |
|---|---|---|
| 1099-K (old) | Gross payment volume | No cost basis, no gain/loss |
| 1099-MISC (old) | Staking/rewards income | No transaction details |
| 1099-DA (new) | Each transaction with cost basis | Centralized exchanges only |
Source: IRS Notice 2024-56 | Infrastructure Investment and Jobs Act 2021
The goal is simple: make crypto tax reporting as standardized and unavoidable as stock trading. No more claiming you "didn't know" you owed taxes. No more hoping the IRS wouldn't notice your trades. The information is now automatically shared.
This represents a fundamental shift in how the IRS approaches crypto enforcement. Instead of relying on audits and investigations to catch tax evaders, they're building a system where compliance is the default because all the data is already in their hands.
For honest taxpayers who've been reporting correctly all along, this is actually good news — the form makes tax preparation easier. For those who haven't been reporting, it's time to get compliant before the IRS comes knocking.
📚 Official IRS Resources
IRS guidance on digital asset reporting requirements.
👤 Who Will Receive a 1099-DA?
Not everyone who owns crypto will receive a 1099-DA. The form is only issued by entities classified as "brokers" under the new IRS regulations. Understanding who does and doesn't send these forms is critical for proper tax reporting.
If you traded on a major centralized exchange like Coinbase, Kraken, Gemini, or Binance US during 2025, you will receive a 1099-DA in early 2026. These platforms are definitively classified as brokers and are required to report your transactions.
The threshold for receiving a form is any reportable transaction — there's no minimum dollar amount like the old 1099-K rules. Even if you made one small trade, you should expect to receive a form. If you only bought crypto and never sold, you typically won't receive a 1099-DA because purchases aren't taxable events.
Custodial wallet services that facilitate sales may also send 1099-DAs. If your wallet allows you to sell crypto directly for fiat currency, the company operating that wallet may be considered a broker.
👤 Who Sends 1099-DA — and Who Doesn't
| Platform Type | Sends 1099-DA? | Your Responsibility |
|---|---|---|
| Coinbase, Kraken, Gemini | Yes | Verify accuracy |
| Binance US, Crypto.com | Yes | Verify accuracy |
| Uniswap, SushiSwap (DEX) | No | Full self-reporting |
| MetaMask, Ledger (self-custody) | No | Full self-reporting |
| Foreign exchanges (Binance.com) | No (for now) | Full self-reporting |
| Peer-to-peer trades | No | Full self-reporting |
Source: IRS Final Regulations on Digital Asset Broker Reporting 2024
Decentralized exchanges (DEXs) like Uniswap, SushiSwap, and PancakeSwap are currently NOT required to send 1099-DAs. The IRS tried to include them but faced legal and technical challenges. For now, DEX transactions must be self-reported — the IRS won't receive automatic notification of your trades.
Self-custody wallets like MetaMask, Ledger, or Trezor don't send 1099-DAs. These are just software or hardware that holds your keys — they don't facilitate trades. Any transactions you make from self-custody wallets must be tracked and reported by you.
Foreign exchanges present a gray area. Exchanges based outside the US may not be subject to 1099-DA requirements. However, US taxpayers are still legally required to report all income regardless of whether they receive a form. Using a foreign exchange doesn't make your gains tax-free.
The key takeaway: receiving a 1099-DA doesn't mean you're compliant, and NOT receiving one doesn't mean you're off the hook. You're responsible for reporting all taxable transactions regardless of what forms you receive.
⚠️ DeFi Users: You Must Self-Report
DEX trades, DeFi yields, and self-custody transactions won't appear on any 1099-DA. You're still legally required to report them.
📊 What Information Is Reported?
Form 1099-DA contains detailed transaction-level information that gives the IRS a complete picture of your crypto trading activity. Understanding each field helps you verify accuracy and prepare for filing.
The form reports every disposal event — sales, trades, and exchanges — that occurred on the platform during the tax year. A disposal is any time you give up ownership of crypto, whether you sold it for cash, traded it for another cryptocurrency, or used it to buy goods or services.
For each transaction, the form includes the date of the transaction, the type and amount of cryptocurrency sold, the gross proceeds (fair market value at time of sale), and ideally the cost basis. The difference between proceeds and cost basis is your gain or loss.
Cost basis reporting is the trickiest part. Exchanges can only report cost basis for crypto you purchased directly on their platform. If you transferred crypto in from another exchange or wallet, they don't know what you originally paid for it. In these cases, the cost basis field may be blank or marked as "unknown."
📊 Key Fields on Form 1099-DA
| Field | Description | Example |
|---|---|---|
| Box 1a: Digital Asset Description | What you sold | 0.5 BTC |
| Box 1b: Date Acquired | When you bought it | 03/15/2024 |
| Box 1c: Date of Sale | When you sold it | 11/20/2025 |
| Box 1d: Proceeds | Sale price in USD | $52,500 |
| Box 1e: Cost Basis | What you paid | $35,000 |
| Box 1g: Gain or Loss | Proceeds minus cost basis | $17,500 |
Source: IRS Form 1099-DA Draft Instructions 2024
The holding period determines whether your gain is short-term or long-term. If you held the crypto for one year or less, it's short-term (taxed at ordinary income rates up to 37%). If you held it longer than one year, it's long-term (taxed at preferential rates of 0%, 15%, or 20%).
Staking rewards, airdrops, and mining income may be reported on a separate section or a different form entirely. These are treated as ordinary income when received, not capital gains. The 1099-DA primarily focuses on capital transactions.
Transaction fees are important but handled inconsistently. In theory, fees should be added to your cost basis (when buying) or subtracted from proceeds (when selling), reducing your taxable gain. Make sure your form reflects this correctly.
Crypto-to-crypto trades are fully taxable and will be reported. If you traded 1 BTC for 15 ETH, that's a disposal of BTC. The "proceeds" is the fair market value of the ETH you received, and your gain is the difference between that value and your BTC cost basis.
Wash sales are NOT currently adjusted on 1099-DA. Unlike stocks, the wash sale rule doesn't apply to crypto yet, so you can harvest losses and immediately repurchase. If this changes in the future, the form may need to reflect disallowed losses.
💡 No Wash Sale Rule for Crypto (Yet)
Unlike stocks, you can sell crypto at a loss and immediately rebuy without losing the deduction.
📅 Timeline and Deadlines
Understanding the 1099-DA timeline helps you prepare for tax season and know when to expect your forms. Missing these dates or ignoring discrepancies can lead to IRS notices and penalties.
Brokers are required to mail 1099-DA forms to taxpayers by January 31, 2026. This is the same deadline as other 1099 forms. You should receive your form by mid-February at the latest. Many exchanges also provide electronic access through their platforms earlier than the mail date.
The IRS receives their copy of your 1099-DA by the same deadline. This means by the time you file your return, the IRS already knows about your transactions. If your return doesn't match what they have on file, it will trigger a notice.
Your tax return deadline is April 15, 2026 for most taxpayers. If you need more time, you can file for an extension until October 15, 2026 — but remember, an extension to file is not an extension to pay. You must estimate and pay any taxes owed by April 15 to avoid penalties and interest.
📅 Key 2026 Tax Dates for Crypto Investors
| Date | Event | Action Required |
|---|---|---|
| January 15, 2026 | Q4 2025 estimated tax due | Pay estimated taxes |
| January 31, 2026 | 1099-DA mailing deadline | Watch for forms |
| February 15, 2026 | Should have received all forms | Contact exchanges if missing |
| April 15, 2026 | Tax return due | File or extend |
| October 15, 2026 | Extended return due | File if extended |
Source: IRS Publication 509 | Tax Calendar for 2026
If you don't receive a 1099-DA by mid-February, log into your exchange accounts to check for electronic delivery. Many platforms now default to electronic forms. If you still can't find it, contact customer support — you may need to request a replacement.
Don't wait for your 1099-DA to start preparing. Most exchanges provide downloadable transaction history throughout the year. Use this data with crypto tax software to generate preliminary calculations before your official forms arrive.
If you receive a corrected 1099-DA after filing your return, you may need to amend. Exchanges sometimes issue corrections in February or March if they discover errors. Compare any corrected forms to your already-filed return and amend if the differences are material.
Keep your 1099-DA forms for at least seven years. The IRS can audit returns up to three years back (six years if there's substantial underreporting), and having the original forms is essential for defending your positions.
📅 Full Q1 2026 Tax Calendar
All critical crypto tax deadlines in one place.
💡 How to Use Your 1099-DA for Filing
Once you receive your 1099-DA, the next step is transferring that information to your tax return. The process is similar to reporting stock sales, using Form 8949 and Schedule D. Here's how to do it correctly.
First, verify your 1099-DA is accurate. Compare the transactions listed against your own records. Check that dates, amounts, and cost basis figures match what you expected. Exchanges make mistakes, especially with cost basis for transferred crypto.
If your 1099-DA shows "unknown" cost basis, you must calculate it yourself. Look back at your purchase records — when did you originally buy the crypto, and what did you pay? This is why keeping good records throughout the year is so important.
Report each transaction on Form 8949 (Sales and Other Dispositions of Capital Assets). You'll list the crypto type, date acquired, date sold, proceeds, cost basis, and gain or loss. The form has two sections: short-term (held one year or less) and long-term (held more than one year).
💡 Step-by-Step Filing Process
| Step | Action | Form |
|---|---|---|
| 1 | Receive and verify 1099-DA | 1099-DA |
| 2 | Calculate missing cost basis | Your records |
| 3 | List each transaction | Form 8949 |
| 4 | Summarize gains/losses | Schedule D |
| 5 | Transfer to main return | Form 1040 |
Source: IRS Form 8949 Instructions | Schedule D Instructions
After completing Form 8949, transfer the totals to Schedule D (Capital Gains and Losses). This form calculates your total capital gains or losses and determines how much tax you owe. The final figure then flows to your Form 1040 (main tax return).
If you have hundreds of transactions, you can summarize them rather than listing each one individually. Attach a statement with the transaction details and write "See attached statement" on Form 8949. Most crypto tax software generates this format automatically.
Use code "B" or "E" in Column (f) of Form 8949 to indicate the 1099-DA was received but cost basis was not reported to the IRS. This tells the IRS you're providing the cost basis yourself. Using the wrong code can trigger unnecessary notices.
Don't forget about crypto income that's NOT on Form 1099-DA. Staking rewards, mining income, airdrops, and payments received in crypto are taxed as ordinary income and reported elsewhere — typically Schedule 1 (Additional Income) or Schedule C (if it's a business).
Consider using crypto tax software like CoinTracker, Koinly, or TaxBit. These platforms import data directly from exchanges, calculate gains/losses, and generate IRS-ready forms. They're especially useful if you have multiple exchanges, DeFi transactions, or complex trading history.
💡 Simplify Your Filing
Crypto tax software automates Form 8949 generation.
⚠️ Common Issues and How to Fix Them
The first year of any new tax form comes with growing pains. Expect some issues with your 1099-DA. Knowing the common problems and how to resolve them prevents filing delays and IRS headaches.
Missing cost basis is the most common issue. If you transferred crypto to an exchange from an external wallet, the exchange doesn't know what you paid for it. Your 1099-DA may show proceeds but no cost basis — or worse, may assume zero cost basis, making your gains look much larger than they are.
The fix: Calculate cost basis yourself using your original purchase records. Report the correct cost basis on Form 8949 and be prepared to substantiate it if the IRS asks. Keep records of your original purchase confirmations, bank statements, or wallet transaction history.
Duplicate reporting can happen if you use multiple exchanges. If you transferred crypto from Exchange A to Exchange B, both might report the disposal. Make sure you're not accidentally reporting the same transaction twice.
⚠️ Common 1099-DA Problems and Solutions
| Problem | Cause | Solution |
|---|---|---|
| Missing cost basis | Transferred crypto in | Calculate and report yourself |
| Incorrect proceeds | Exchange calculation error | Request corrected form |
| Duplicate transactions | Multiple exchanges | Reconcile and eliminate duplicates |
| Missing transactions | Technical issues | Add from your own records |
| Wrong holding period | Transfer date used instead of purchase | Correct on Form 8949 |
| Form never received | Mailing/email issue | Check online, contact support |
Document all discrepancies and corrections in case of IRS inquiry
Wrong holding period classification is another issue. If you transferred long-term holdings to a new exchange and then sold, the exchange may classify the sale as short-term because they only see when you deposited to their platform — not when you originally bought.
The fix: Override the holding period on Form 8949 using your actual purchase date. The IRS allows you to report the correct holding period even if the 1099-DA shows something different. Just make sure you have records to prove it.
Timing discrepancies between exchanges can cause confusion. If you sold crypto at 11:58 PM on December 31st on the East Coast, but the exchange runs on UTC time, it might show as January 1st. This could affect which tax year the transaction falls into.
If you believe your 1099-DA contains material errors, contact the exchange to request a corrected form. Exchanges are required to issue corrected 1099s when they become aware of errors. Document your communication in case you need to prove you tried to resolve the issue.
When in doubt, report what's correct — not what's on the form. If you have documentation supporting a different figure than what's on your 1099-DA, use your figures. Just be prepared to explain the discrepancy if the IRS asks.
⚠️ Avoid IRS Red Flags
Large discrepancies between your return and 1099-DA can trigger audits.
📚 Related Articles from legalmoneytalk
➡️ Q1 2026 Crypto Tax Calendar — All Key Deadlines
➡️ Crypto Wash Sale Rules 2026
➡️ Best Crypto Tax Software 2026
❓ FAQ
Q1. When will I receive my 1099-DA?
A1. Exchanges must mail 1099-DA forms by January 31, 2026. You should receive yours by mid-February. Many exchanges also provide electronic access through their platforms, which may be available earlier. Check your exchange account settings to ensure your address and email are current.
Q2. What if I only bought crypto and never sold?
A2. You likely won't receive a 1099-DA. The form only reports disposals — sales, trades, or exchanges. Simply buying and holding crypto is not a taxable event. However, if you received staking rewards, airdrops, or other income, those may be reported on different forms.
Q3. Will DeFi transactions be on my 1099-DA?
A3. No. Decentralized exchanges (DEXs) and DeFi protocols are not currently required to issue 1099-DA forms. You must track and report these transactions yourself. Use crypto tax software or blockchain explorers to compile your DeFi transaction history.
Q4. What if my 1099-DA shows wrong cost basis?
A4. Report the correct cost basis on Form 8949. Use code "B" (short-term) or "E" (long-term) in Column (f) to indicate you're correcting the basis. Keep documentation of your actual purchase to support your figures if the IRS asks.
Q5. Do I need to report transactions not on the 1099-DA?
A5. Yes. You're legally required to report all taxable transactions regardless of whether you receive a form. DEX trades, peer-to-peer sales, and foreign exchange transactions must still be reported even though no 1099-DA is issued.
Q6. What if I used multiple exchanges?
A6. You'll receive a separate 1099-DA from each exchange where you had taxable transactions. Compile all forms when preparing your return. Watch for duplicate reporting if you transferred crypto between exchanges — the transfer itself isn't taxable, but both exchanges might report related transactions.
Q7. Are NFT sales reported on 1099-DA?
A7. It depends on the platform. Centralized NFT marketplaces that act as brokers may issue 1099-DAs for sales. However, many NFT transactions occur through smart contracts without a traditional broker, meaning no form will be issued. NFT gains are still taxable and may face the 28% collectibles rate.
Q8. What happens if I ignore my 1099-DA?
A8. The IRS receives a copy of your 1099-DA. If your tax return doesn't include the reported transactions, their automated matching system will flag the discrepancy. You'll receive a CP2000 notice proposing additional tax. Continued non-compliance can lead to penalties, interest, and potential audit.
⚠️ Disclaimer
This article is for informational purposes only and does not constitute tax, legal, or financial advice. Form 1099-DA requirements are new and may be subject to additional IRS guidance. Tax treatment may vary based on specific facts and individual circumstances.
Consult with a qualified CPA, tax attorney, or other licensed professional before making any tax-related decisions. The author and publisher are not responsible for any errors, omissions, or actions taken based on this information.
Sources: Infrastructure Investment and Jobs Act 2021 | IRS Notice 2024-56 | IRS Form 1099-DA Instructions | IRS Publication 550
Last Updated: December 26, 2025 | Author: Davit Cho | LinkedIn: linkedin.com/in/davit-cho-crypto
Tags: 1099-DA, Crypto Tax Form, IRS Crypto Reporting, Digital Asset Tax, Crypto Tax 2026, Form 8949, Schedule D, Cryptocurrency Tax, Tax Filing, Broker Reporting
