What is Form 1099-DA?
Form 1099-DA (Digital Asset Proceeds From Broker Transactions) is a new IRS form that crypto brokers — centralized exchanges, digital asset payment processors — use to report your sales to the IRS. It began with 2025 transactions, with cost-basis reporting phasing in over the following years.
Who sends you a 1099-DA?
Custodial brokers: centralized exchanges (the big US platforms) and payment processors that handle crypto. If you sold, swapped, or spent crypto on one of these, expect a 1099-DA.
What's NOT on a 1099-DA (important)
- Non-US exchanges — pending coordination with the OECD's crypto reporting framework (CARF), foreign exchanges generally don't issue 1099-DA
- DeFi transactions — where no controlling third party facilitates the trade
- Qualifying stablecoin and some NFT sales below de-minimis thresholds
- Direct wallet-to-wallet transfers with no broker involved
The cost-basis gap
Early 1099-DAs often report your gross proceeds without cost basis, especially for:
- Assets you bought before 2026 (not "covered")
- Sales on noncustodial platforms that touch but don't hold your crypto
Without basis, a $50,000 sale looks like $50,000 of gain to the IRS's matching system — even if your real gain was $3,000. This is the #1 reason crypto investors get CP2000 notices they shouldn't.
Broker transition relief
The IRS gave brokers relief to issue some 1099-DAs up to a year late (into February 2027). So you may receive a 1099-DA in 2027 for a 2025 transaction — and need an amended return if you didn't report it originally.
What to do now
- Keep your own transaction records — don't rely on the exchange's basis
- Reconcile every 1099-DA against your records before filing
- Report all crypto income even without a form
For US LLCs and non-resident founders trading crypto, this interacts with how your entity is taxed — worth getting right from the start.
Frequently asked questions
What is Form 1099-DA?
It's a new IRS form that crypto brokers use to report your digital asset sales to the IRS, similar to a stock brokerage's 1099-B. It started with 2025 transactions.
Do I owe tax if I don't get a 1099-DA?
Yes. You must report every taxable crypto event — sale, swap, or spend — whether or not you receive a form. The 1099-DA is the IRS's record copy, not the trigger for your tax obligation.
Why doesn't my 1099-DA show cost basis?
Early forms often report only gross proceeds, especially for assets bought before 2026 or sold on noncustodial platforms. You'll need your own records to calculate the actual gain.
Do DeFi and foreign exchanges send 1099-DA?
Generally no — DeFi transactions without a controlling intermediary and most non-US exchanges don't issue 1099-DA yet. You're still required to report that income yourself.
What if I get a 1099-DA in 2027 for an old transaction?
Brokers have transition relief to issue some forms late. If you receive one for a transaction you didn't report, you may need to file an amended return to reconcile.
Trading crypto and unsure what to report?
We reconcile your 1099-DAs against your real basis so you report the correct gain — not the inflated number the IRS sees.
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