Data Notice: This article covers IRS Form 1099-DA requirements for the 2025-2026 tax years. Digital asset reporting rules are evolving rapidly. Verify current requirements with IRS publications and a licensed tax professional.

Form 1099-DA Explained: What Crypto Investors Need to Know for 2026 Tax Filing

This article provides general tax education and is not a substitute for professional tax advice.

The IRS has introduced Form 1099-DA (Digital Asset Proceeds From Broker Transactions) to bring cryptocurrency tax reporting in line with traditional securities. If you sold, exchanged, or otherwise disposed of digital assets through a U.S.-based exchange in 2025, you should have received your first 1099-DA by mid-February 2026.

This guide explains what the form covers, what it does not, and how to use it to file your crypto taxes correctly.

What Is Form 1099-DA?

Form 1099-DA is the IRS information return that standardizes third-party reporting for digital asset transactions. According to the IRS instructions, brokers are required to issue the form for each sale of digital assets executed on behalf of customers beginning with the 2025 tax year.

What Gets Reported

Each form shows:

Gross proceeds from the sale or exchange
Acquisition date (if known)
Sale date
Cost basis (beginning with 2026 transactions — see below)
Transaction type (sale, exchange, etc.)

Who Issues the Form

Platforms required to issue Form 1099-DA include centralized exchanges and brokers such as Coinbase, Kraken, Gemini, Binance.US, PayPal, Venmo, Cash App, Robinhood, and OpenSea. According to Withum’s analysis, most major U.S.-based platforms began issuing the form in January 2026.

The Cost Basis Problem

For 2025 transactions (reported on 1099-DAs received in early 2026), brokers are not required to report cost basis to the IRS. This is the single biggest source of confusion in the first year of 1099-DA reporting.

What this means:

Your 1099-DA may show gross proceeds but list cost basis as “unknown” or leave it blank
You are still responsible for calculating and reporting your cost basis
The IRS will match your reported proceeds against the 1099-DA data automatically

Starting with 2026 transactions (forms issued in early 2027), brokers will be required to report cost basis, making reconciliation much easier going forward.

Per-Wallet Basis Tracking

According to The Tax Adviser’s March 2026 analysis, the IRS has eliminated the “universal method” that allowed treating the same asset across multiple wallets as one combined pool. You are now expected to maintain cost basis records on a per-wallet or per-account basis.

This is a significant change for active crypto users who move assets between exchanges and wallets frequently.

What 1099-DA Does NOT Cover

The form only covers transactions executed through reporting brokers. The following are not reported on 1099-DA:

DeFi protocol transactions — swaps on Uniswap, Aave lending, etc.
Wallet-to-wallet transfers — moving crypto between your own wallets
Mining and staking rewards — reported separately as income
Airdrops — taxable as income when received
NFT sales on non-reporting platforms
International exchange transactions

According to MetaMask’s 2026 tax guide, DeFi activity, NFT sales, and many on-chain actions will not appear on 1099-DA. You must track and report these transactions separately.

How to Reconcile Your 1099-DA

Do not prepare your tax return from the 1099-DA alone. Follow these steps:

Step 1: Gather All 1099-DAs

You may receive multiple forms from different exchanges. Collect them all.

Step 2: Cross-Reference with Your Records

Compare each 1099-DA against your own transaction history. Look for:

Missing transactions (not all activity may appear)
Incorrect cost basis (if reported)
Duplicate reporting (assets transferred between exchanges)

Step 3: Calculate Unreported Transactions

Any DeFi swaps, staking rewards, or wallet transactions not on a 1099-DA must still be reported. Use crypto tax software (CoinTracker, Koinly, TaxBit) or manual spreadsheets.

Step 4: Choose Your Accounting Method

You can use FIFO (first in, first out), LIFO (last in, first out), or specific identification for determining which units you sold. The method must be applied consistently.

Step 5: Report on Schedule D and Form 8949

All digital asset gains and losses are reported on Schedule D (Capital Gains and Losses) and Form 8949 (Sales and Other Dispositions of Capital Assets).

For a comprehensive overview of capital gains reporting, see our Capital Gains Tax Guide and Crypto Tax Guide 2026.

IRS Enforcement: What Happens If You Don’t Report

The introduction of Form 1099-DA creates a direct data pipeline between exchanges and the IRS. According to VIP Wealth Advisors’ analysis, the agency will automatically match 1099-DA data to your tax return. Mismatches trigger automated notices.

Consequences of non-reporting include:

CP2000 notices — proposed changes to your return based on mismatched data
Accuracy-related penalties — 20% of the underpayment
Failure-to-file penalties — escalating monthly penalties
Criminal prosecution — in cases of willful evasion

Key Dates for 2026

Date	Event
January 31, 2026	Brokers issue 1099-DAs for 2025 transactions
April 15, 2026	Filing deadline for 2025 individual returns
October 15, 2026	Extended filing deadline
January 1, 2026+	Transactions now subject to cost basis reporting

For guidance on filing your overall return, see our How to File Taxes guide and IRS Audit Guide.

Sources

Understanding your Form 1099-DA — IRS — accessed March 26, 2026
Form 1099-DA for Crypto in 2026 — Withum — accessed March 26, 2026
Navigating the Form 1099-DA reporting maze — The Tax Adviser — accessed March 26, 2026