Answers Tax & reporting (US)

What is Form 1099-DA?

Updated August 1, 2026 · Zion Labs US

Answer

Form 1099-DA, "Digital Asset Proceeds From Broker Transactions", is the US information return that custodial brokers use to report their customers' digital asset sales and exchanges to the IRS. Under the final regulations, brokers report gross proceeds for transactions effected on or after 1 January 2025, and add basis reporting for certain transactions effected on or after 1 January 2026. That two-stage rollout is the thing most people get wrong: a form covering 2025 that shows a large proceeds figure and no cost basis is working as designed, and the proceeds figure is not your gain.

Nuances and considerations

  • Gross proceeds are not gain. Proceeds are what you received; gain is proceeds minus your basis in what you gave up. For a crypto-to-crypto exchange the reported proceeds include the fair market value of the property received, so a year of active swapping can produce a proceeds total far larger than any money you ever made. For 2025 transactions the basis side is simply not on the form, and supplying it is on you.
  • Who files it, and who does not. The final regulations reach brokers that take possession of the digital assets being sold — custodial trading platforms, hosted wallet providers, kiosks and certain payment processors. Platforms that never take possession are outside these rules, so an absent form does not imply an absent transaction.
  • There is deliberate slack in the first cycle. Notice 2024-56 provides that the IRS will not impose information-reporting penalties on brokers for 2025 sales reported in 2026 where the broker made a good-faith effort to file and furnish accurate, timely forms. Notice 2024-57 holds certain transactions — including wrapping, lending and staking activity — outside the reporting requirement pending further guidance. Expect inconsistency between platforms in this period, and reconcile against your own records rather than assuming the form is right.
  • No form does not mean no tax. Digital assets are treated as property for US federal tax purposes and income from them is taxable. The information return is a reporting mechanism layered on top of a liability that already exists.
  • This is US federal reporting only, and it is general information rather than tax advice. Your residency, holding period, and how a position was acquired all change the outcome — get a professional opinion before filing.

Sources

  1. About Form 1099-DA, Digital Asset Proceeds From Broker Transactions — Internal Revenue Service Supports: The official name of the form and its purpose — reporting digital asset proceeds from broker transactions.
  2. Final regulations and related IRS guidance for reporting by brokers on sales and exchanges of digital assets — Internal Revenue Service Supports: That brokers must report gross proceeds for transactions effected on or after 1 January 2025 and basis on certain transactions effected on or after 1 January 2026; that the rules apply to brokers that take possession of the digital assets being sold; and the transitional relief in Notices 2024-56 and 2024-57.
  3. Digital assets — Internal Revenue Service Supports: That for US tax purposes digital assets are treated as property and that income from digital assets is taxable.

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