What Is Form 1099-DA?

Form 1099-DA is the new IRS form crypto brokers must send starting with 2025 sales. What it reports, who has to send it, and how to reconcile it with Form 8949.

Updated July 2026 · Educational only, not tax or financial advice

Form 1099-DA is the new IRS information return digital asset brokers must send starting with 2025 transactions, reporting gross proceeds now and cost basis starting in 2026

The IRS matches your broker's Form 1099-DA against your own Form 8949, so a mismatch can trigger an automated CP2000 notice — knowing what the form does and doesn't cover keeps your filing in sync with it.

How to report crypto on Form 8949 →

Topic

Tax form

Why it matters

The direct answer

Form 1099-DA is the IRS tax form that digital asset brokers use to report your cryptocurrency sales and disposals directly to the federal government. Under IRS Notice 2014-21, the IRS treats cryptocurrency as property rather than currency, which means every sale, trade, or purchase made with crypto creates a taxable disposal.

Brokers must issue Form 1099-DA starting with 2025 transactions, with the initial batch arriving in early 2026. For 2025 transactions, the form generally reports gross proceeds only, without cost basis information. This means the form shows the dollar value you received when selling or trading an asset, but it does not calculate your profit or loss.

Cost basis reporting on Form 1099-DA is scheduled to begin with 2026 transactions. Until that second phase takes effect, you remain responsible for supplying the original purchase price, fees, and acquisition dates for each asset you sold.

The IRS receives a copy of every Form 1099-DA your brokers file. The agency uses its Automated Underreporter system to match these broker-reported numbers against the entries on your tax return. If you file Form 8949 without reconciling against your 1099-DA statements, the agency flags discrepancies automatically.

How it works

Form 1099-DA operates through a phased rollout designed to increase IRS visibility into digital asset transactions. Centralized, US-facing exchanges and brokers that meet the IRS digital-asset broker definition must issue the form. Entities such as Coinbase, Robinhood, and Kraken fall under this rule for transactions occurring in 2025 and later. Non-custodial wallets and decentralized applications like Phantom do not issue Form 1099-DA, because they do not take custody of user funds or collect identity verification data.

The reporting rules differ between tax years. For 2025 transactions reported in early 2026, brokers generally provide only your gross proceeds from disposals. Cost basis reporting is scheduled to start with 2026 transactions. Because 2025 forms lack cost basis, relying solely on your 1099-DA could lead to paying tax on your entire gross proceeds rather than your actual net capital gain.

You use Form 1099-DA as a cross-reference sheet rather than a final tax calculation. To report your sales to the IRS, you enter each individual transaction on Form 8949, pair the gross proceeds with your own cost basis records, and determine whether each disposal produced a capital gain or a capital loss. Our detailed walkthrough on how to report crypto on Form 8949 explains how those figures transfer to Schedule D and Form 1040.

The IRS Automated Underreporter system runs automated checks comparing the gross proceeds reported on Form 1099-DA against the proceeds listed on your Form 8949. If the gross proceeds a broker reports on your Form 1099-DA don't match what you list on your Form 8949, or if you omit digital asset disposals entirely, the system detects the gap. This mismatch can trigger an IRS CP2000 notice. A CP2000 is a computer-generated proposal for additional tax, interest, and penalties, rather than an audit, and you can resolve it by submitting documentation of your cost basis.

Form 1099-DA covers sales and disposals, but other types of crypto events fall under separate reporting rules. Brokers and exchanges often issue Form 1099-MISC for miscellaneous income such as staking rewards, promotional bonuses, or referral payouts once that income reaches $600 in a calendar year. That $600 figure represents only the reporting threshold for the broker. Under federal tax rules, you must report all taxable crypto income and capital gains on your tax return, even if the total amount is below $600 or if the platform never sends a tax form.

Preparing your return requires matching every Form 1099-DA against your internal tracking before filing. If you moved assets between self-custody wallets and custodial exchanges, the exchange may lack your original acquisition price. Reviewing your transaction history, confirming your cost basis across all platforms, and entering each disposal accurately on Form 8949 ensures your filed numbers align with IRS records.

Step by step

1Collect Form 1099-DA statements from each custodial exchange where you sold or traded digital assets during the tax year.
2Verify whether each received Form 1099-DA reports gross proceeds only or includes cost basis figures.
3Retrieve your original purchase records, dates, and transaction fees from your wallets and exchange histories to establish cost basis.
4Reconcile the gross proceeds reported on your 1099-DA forms against your personal transaction records to spot discrepancies.
5Enter each transaction line by line on IRS Form 8949, separating short-term disposals into Part I and long-term disposals into Part II.
6Transfer the netted totals from Form 8949 to Schedule D to combine digital asset outcomes with other capital gains and losses.
7Retain copies of all Form 1099-DA forms, wallet logs, and calculation sheets to support your filing in case the IRS issues an automated inquiry.

When it helps

Form 1099-DA provides an official record of gross proceeds from US-regulated exchanges, making transaction tracking easier to standardize.
Standardized reporting reduces the likelihood of reporting gaps between taxpayers and centralized brokers like Coinbase, Robinhood, and Kraken.
Automated matching gives taxpayers an early warning system through CP2000 notices to correct omissions before formal penalties compound.
The upcoming transition to cost basis reporting will decrease the manual bookkeeping required for long-term cryptocurrency investors.

Watch-outs

For 2025 transactions, Form 1099-DA generally reports gross proceeds without cost basis, requiring filers to calculate their own acquisition costs.
Discrepancies between Form 1099-DA and Form 8949 can trigger automated IRS CP2000 notices proposing additional taxes.
Decentralized applications and non-custodial wallets like Phantom do not issue Form 1099-DA, leaving self-custody activity off the broker statements.
Transferring tokens between external wallets and centralized exchanges can result in missing basis data that filers must locate manually.
Filers who mistake gross proceeds on Form 1099-DA for taxable net gains risk substantially overpaying their tax liabilities.

Common questions

What is Form 1099-DA?

Form 1099-DA is an IRS information return that digital asset brokers must issue to report sales and disposals of cryptocurrency. Brokers must issue the form starting with 2025 transactions, with initial forms arriving in early 2026. For 2025, it generally reports gross proceeds, with cost basis reporting scheduled to begin for 2026 transactions.

Is 1099-DA for crypto?

Yes, Form 1099-DA is designed specifically for digital assets, including cryptocurrencies, stablecoins, and non-fungible tokens. The IRS treats digital assets as property under Notice 2014-21, which means every sale or trade is a taxable disposal that brokers must report to the IRS and provide to account holders.

Does crypto.com issue 1099-DA?

Any US-facing centralized exchange or broker that meets the IRS definition of a digital asset broker must issue Form 1099-DA starting with 2025 transactions. Taxpayers should consult the tax document section of their specific platform account to confirm issuance status, as requirements apply to all qualifying US-facing custodial platforms.

What happens if my Form 8949 doesn't match my 1099-DA?

A mismatch between your Form 8949 and a broker's Form 1099-DA can trigger an IRS CP2000 notice through the Automated Underreporter system. A CP2000 is a computer-generated notice proposing adjustments to your tax liability, not a formal audit. You can respond to the notice by providing your personal records, transaction logs, and cost basis calculations to resolve the discrepancy.

Do I owe tax on crypto income under $600 even without a 1099?

Yes. Under federal tax law, you must report all taxable crypto income and capital gains regardless of the amount. The $600 threshold on forms such as Form 1099-MISC applies only to the broker's legal requirement to send paperwork, not to your obligation to pay tax. Even a single dollar of capital gain or income remains subject to tax reporting.

Which crypto platforms send Form 1099-DA?

US-facing centralized brokers and exchanges that meet the IRS digital-asset broker definition must issue Form 1099-DA starting with 2025 transactions. Examples of platforms required to report include Coinbase, Robinhood, and Kraken. Non-custodial wallets like Phantom do not issue 1099 forms because they do not take custody of funds or maintain user identity accounts.

What is the difference between Form 1099-DA and Form 8949?

Form 1099-DA is an information return sent to you and the IRS by your broker, showing your gross proceeds from digital asset disposals. Form 8949 is the tax return form that you complete and file with your Form 1040. On Form 8949, you enter your proceeds, subtract your cost basis, and calculate your net capital gain or loss.

Why does my 2025 Form 1099-DA only show gross proceeds?

The IRS phased in Form 1099-DA reporting in two stages. For 2025 transactions, digital asset brokers are generally required to report gross proceeds only. Full mandatory cost basis reporting is scheduled to start with 2026 transactions, which means taxpayers filing for 2025 must supply their own cost basis figures.

How does the IRS match Form 1099-DA against tax returns?

The IRS processes Form 1099-DA data through its Automated Underreporter computer system. This system automatically compares the gross proceeds reported by brokers against the total proceeds listed on your Form 8949 and Schedule D. When the computer detects an unexplained variance or missing return, it generates a CP2000 proposal notice.

What should I do if I receive an IRS CP2000 notice about crypto?

Review the CP2000 notice carefully, compare the listed figures against your transaction histories, and respond before the stated deadline. Many CP2000 notices for crypto occur because 2025 Form 1099-DA forms report gross proceeds without cost basis, leading the IRS to treat the entire payout as taxable gain. Submitting your cost basis documentation clarifies your actual profit.

Sources

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