Form 1099-DA in 2026: What Crypto Investors Need to Know
Digital asset tax reporting has entered a new phase.
Beginning with transactions occurring in 2025, certain digital asset brokers must report customer sales and dispositions to the IRS on Form 1099-DA, Digital Asset Proceeds From Broker Transactions.
Taxpayers began receiving the first Forms 1099-DA in early 2026. For transactions occurring in 2026, reporting expands further, including required cost-basis reporting for certain covered digital assets.
What Is Form 1099-DA?
Form 1099-DA is the digital-asset equivalent of the information reporting investors are accustomed to receiving for traditional brokerage transactions.
Depending on the transaction and tax year, the form may report:
Digital asset sold or disposed of
Date of disposition
Gross proceeds
Number of units involved
Cost basis, when required
Whether certain withholding occurred
The IRS receives a copy of the information reported by the broker.
The Rules Are Being Phased In
The reporting requirements did not begin all at once.
For 2025 transactions:
Covered brokers generally report gross proceeds
Most Forms 1099-DA do not include cost basis
Taxpayers remain responsible for calculating their own basis and gain or loss
For 2026 transactions:
Gross-proceeds reporting continues
Brokers must begin reporting basis for certain covered digital assets
Basis reporting for some noncovered assets remains optional
Special reporting rules can apply to qualifying stablecoins and NFTs
The IRS's 2026 Form 1099-DA instructions specifically require basis reporting for covered digital assets sold after 2025.
Receiving a 1099-DA Does Not Replace Your Own Records
This is one of the most important points for investors.
A Form 1099-DA may not contain everything necessary to calculate the correct gain or loss.
For example, problems can arise when:
Crypto was transferred between exchanges or wallets
Assets were originally acquired before broker basis-reporting requirements applied
Transactions occurred through foreign platforms
Assets were held in self-custody
Multiple lots were acquired at different prices
DeFi or noncustodial platforms were used
The IRS itself advises taxpayers and tax professionals to reconcile activity across exchanges, wallets, and accounts and maintain accurate cost-basis information.
Transfers Between Your Own Wallets Are Generally Not Taxable
Moving cryptocurrency from one wallet or account that you own to another wallet or account that you also own generally does not create taxable gain or loss.
However, transaction fees paid with digital assets can create additional tax considerations.
Good records are important because a broker receiving transferred assets may not have complete information about when those assets were purchased or what you originally paid for them.
You Must Report Digital Assets Even Without a 1099-DA
Not every digital asset transaction will generate a Form 1099-DA.
For example, some foreign brokers and noncustodial or decentralized platforms may not have the same reporting obligations as U.S. custodial brokers.
That does not eliminate the taxpayer's reporting obligation.
Taxpayers generally must report taxable digital-asset income, gains, and losses whether or not they receive a tax form from a broker.
Remember the Digital Asset Question
Federal income tax returns also include a digital asset question that taxpayers must answer Yes or No.
Transactions that may require a “Yes” answer can include:
Selling cryptocurrency
Exchanging one digital asset for another
Receiving digital assets as compensation
Receiving staking or similar rewards
Using digital assets to purchase goods or services
Simply purchasing digital assets with U.S. dollars and holding them generally does not, by itself, require a “Yes” answer. Transfers solely between wallets or accounts you own generally also do not.
What Crypto Investors Should Do Now
If you own or trade digital assets, consider keeping:
Complete transaction histories from every exchange
Records of purchases and original cost basis
Wallet-transfer records
Documentation of staking, rewards, or other income
Records showing which tax lots were sold
Copies of all Forms 1099-DA received
Do not assume the figures on a 1099-DA automatically represent the correct taxable gain.
Preparing for More Complete Digital Asset Reporting
Form 1099-DA should eventually make digital asset tax reporting more consistent, but the transition period creates additional complexity.
For now, taxpayers with activity across multiple platforms or wallets may still need to reconstruct basis and reconcile transactions independently before filing.
The earlier you organize those records, the easier it is to identify missing basis, duplicate transactions, and other reporting issues before preparing the tax return.
Have Digital Asset Transactions to Report?
If you sold, exchanged, transferred, or earned digital assets and are uncertain about the tax reporting, we can help review the activity, reconcile available tax documents, and determine the appropriate federal tax treatment.
This article is for general informational purposes only and does not constitute tax, legal, or investment advice. Tax outcomes depend on individual circumstances and applicable law.