Form 1099-DA Explained: Crypto Broker Reporting for 2025-26
Form 1099-DA explained: who issues it, gross proceeds from 2025, cost basis from 2026, why basis is often blank, the DeFi rule repeal and what to do.
Form 1099-DA is the IRS information return that US crypto brokers, such as custodial exchanges and some hosted wallet providers, use to report customers' digital asset sales and exchanges. It covers transactions from 1 January 2025: for 2025 sales, brokers report gross proceeds; for sales from 2026, they also report cost basis for assets bought in the same custodial account from 2026 onwards. You get a copy, and so does the IRS.
This guide explains who issues the form, what is on it, why the basis box is often blank, what happened to the DeFi broker rule, and what you should do with the form. It is general information, not tax advice.
What is Form 1099-DA?
Form 1099-DA, "Digital Asset Proceeds From Broker Transactions", exists because the Infrastructure Investment and Jobs Act of 2021 extended broker reporting under section 6045 of the Internal Revenue Code to digital assets. Treasury and the IRS issued the final regulations in Treasury Decision 10000, published on 9 July 2024 (IRS digital assets page, updated 2 September 2026).
It works much like Form 1099-B for stocks. The broker files the form with the IRS and sends you a payee statement, so the IRS can match what you report on your return with what the broker says you sold. For the first year, 2025 transactions, the IRS's General Instructions for Certain Information Returns set the due date for furnishing recipient statements for Forms 1099-B and 1099-DA at 17 February 2026.
Who issues a 1099-DA?
Under the 2026 Instructions for Form 1099-DA, a broker is anyone who, in the ordinary course of a trade or business, stands ready to effect sales of digital assets for others. In practice, the IRS says the rules apply to brokers that take possession of the digital assets their customers sell:
- operators of custodial trading platforms (centralised exchanges);
- certain hosted wallet providers;
- digital asset kiosks (crypto ATMs);
- certain processors of digital asset payments (PDAPs);
- issuers that regularly offer to redeem the digital assets they issue.
Generally only US digital asset brokers report on Form 1099-DA. Businesses that only validate transactions (mining or staking validation) or only provide wallet hardware or software that lets users control their own keys are not digital asset middlemen under the instructions.
What the form reports, year by year
| Sales effected in | Gross proceeds | Cost basis |
|---|---|---|
| 2025 | Required | Not required (brokers may report it voluntarily) |
| 2026 and later | Required | Required for "covered securities"; optional for noncovered |
Gross proceeds are what you received, reduced by transaction costs such as fees and commissions. Sales include swaps of one digital asset for another, not just sales for dollars.
Why your basis box may be blank
From 2026, basis is mandatory only for covered securities. The instructions define these as digital assets acquired after 2025 in an account where the broker provided custodial services, and held there until the broker sells them. Everything else is a noncovered security, including:
- anything you bought before 2026;
- anything you transferred in from another exchange or a self-custody wallet;
- anything bought somewhere the broker did not provide custody.
For noncovered assets the broker can check box 9 and leave basis blank. If you moved coins between platforms, the form will often show proceeds with no basis, and the job of working out your gain falls to you.
Stablecoins, NFTs and payments
The instructions include optional reporting methods and de minimis rules:
- Qualifying stablecoins: a broker using the optional method does not have to report designated sales if your total proceeds from them that year are $10,000 or less. Above that, it reports aggregate figures per stablecoin.
- Specified NFTs: under the optional method, no reporting if total proceeds are $600 or less for the year.
- Payment processor sales: a PDAP need not report if your PDAP sales are $600 or less for the year.
Staking and other rewards are not reported on Form 1099-DA. The instructions say so directly. That income is still taxable and goes on your return separately.
What happened to the DeFi broker rule?
On 30 December 2024, Treasury and the IRS published a second final rule requiring "certain decentralized finance industry participants", chiefly providers of trading front-end services, to report as brokers. Congress overturned it. Public Law 119-5, a Congressional Review Act resolution (H.J. Res. 25) approved on 10 April 2025, disapproved the rule "Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales" and states that it "shall have no force or effect". The House passed it on 11 March 2025 and the Senate on 26 March 2025.
So, as of October 2026, Form 1099-DA reporting comes from custodial brokers. Non-custodial DeFi protocols do not issue it. That doesn't make DeFi transactions tax-free: you still report them yourself. JewelSwap's apps, for example, are non-custodial, so there is no broker account for a 1099-DA to come from.
W-9s, TINs and backup withholding
To report correctly, brokers need your taxpayer identification number (TIN), usually collected on Form W-9, or a Form W-8 if you are not a US person. That is why US exchanges are asking customers to confirm tax details, typically alongside the identity checks they run with vendors such as iDenfy's crypto identity verification.
If you don't provide a certified TIN, brokers are generally required to apply backup withholding, currently 24%, on reportable proceeds. The IRS has granted transition relief. Under Notice 2025-33, backup withholding is not required on digital asset sales a broker effects in calendar years 2025 or 2026. For 2027, brokers can rely on uncertified TINs for customers whose accounts existed before 2026, if the name and TIN match IRS records through the TIN Matching Program.
In short, answer your exchange's W-9 request before 2027 to avoid withholding later.
What to do when you receive a 1099-DA
- Check the details. Name, TIN, dates and proceeds should match your own records. Ask the broker to correct errors.
- Fill in missing basis. For noncovered assets, use your own records of what you paid. The IRS expects you to report gain or loss whether or not the broker reported basis.
- Report everything, not just what is on forms. The IRS digital asset FAQs say you must report all taxable digital asset gains and losses regardless of the amount or whether you receive a payee statement. That includes DeFi swaps, transactions on foreign platforms and amounts under the de minimis thresholds.
- Use the right forms. Capital gains and losses go on Form 8949 and Schedule D. Ordinary income such as staking rewards goes on Schedule 1 of Form 1040, according to the IRS.
- Answer the digital asset question. Form 1040 and other returns ask whether, at any time during the year, you received digital assets as a reward, award or payment, or sold, exchanged or otherwise disposed of them.
- Keep per-wallet records. Basis now has to be tracked per wallet or account rather than across all your holdings. The IRS's Rev. Proc. 2024-28 offered a safe harbour for allocating unused basis to each wallet or account as of 1 January 2025.
Watch out for "compliance portal" scams
The IRS warns about letters with QR codes claiming to be from the IRS and asking you to register your crypto on a "Digital Assets Compliance Portal". The IRS says it does not require registration of digital assets and is not sending these letters. Our guide to crypto scams in 2026 covers similar tricks.
How 1099-DA fits with global reporting
Form 1099-DA is a domestic US regime. Other countries are adopting the OECD's Crypto-Asset Reporting Framework, under which exchanges report customers' tax residence and transaction totals for sharing between tax authorities. The OECD Global Forum lists the US as committed to CARF exchanges by 2029. See our CARF guide and, for the EU, DAC8.
Frequently asked questions
What is Form 1099-DA?
An IRS information return that US digital asset brokers use to report customers' sales and exchanges of crypto and other digital assets. The broker sends one copy to the IRS and one to you. It covers transactions from 1 January 2025.
Does Form 1099-DA show my cost basis?
Not for 2025 sales, when only gross proceeds are required. From 2026, brokers must report basis only for covered securities, meaning assets acquired from 2026 in the same custodial account. Transferred-in or older coins usually show no basis.
Do DeFi platforms send Form 1099-DA?
No. Congress overturned the DeFi broker rule with Public Law 119-5 on 10 April 2025. Form 1099-DA reporting comes from custodial brokers, but you must still report taxable DeFi transactions yourself.
Are staking rewards reported on Form 1099-DA?
No. The IRS instructions say rewards and staking payments are not reported on Form 1099-DA. They are still taxable income and are reported separately on your return.
Do I have to report crypto if I did not get a 1099-DA?
Yes. The IRS says you must report all taxable gains and losses from digital assets regardless of the amount or whether you receive a payee statement or information return.
Will my exchange withhold tax if I do not give my TIN?
Brokers must generally apply 24% backup withholding when a customer does not provide a certified TIN, but IRS Notice 2025-33 waives that obligation for sales effected in 2025 and 2026. Provide your TIN before 2027.
Keep reading
- CARF: the Crypto-Asset Reporting Framework
- DAC8 crypto reporting explained
- KYC in DeFi explained
- What is KYC in crypto?
- Self-custody crypto guide
This article is educational and is not tax, legal or financial advice. Details are from the IRS Instructions for Form 1099-DA (2025 and 2026), the 2025 General Instructions for Certain Information Returns, IRS Notice 2025-33, IRS digital asset pages and FAQs, and Public Law 119-5, all checked on 9 October 2026. Tax rules change; consult a qualified tax adviser about your situation.
