What Form 1099-DA is
Form 1099-DA, Digital Asset Proceeds From Broker Transactions, is the digital-asset counterpart of Form 1099-B. It was created by the final broker regulations the Treasury issued in July 2024 (T.D. 10000) under the reporting mandate in the 2021 Infrastructure Investment and Jobs Act. A broker files one for each customer for each sale or exchange of a digital asset it effected, showing the date, the asset, the units, the gross proceeds and, from 2026, the cost basis and holding period for assets the broker has basis information for.
Like every other 1099, the form carries the customer’s name and taxpayer identification number, and the IRS matches the two against its records. That is why a form built for crypto ends up governed by the same W-9, CP2100 and backup-withholding rules as a 1099-NEC.
Who has to file
| Filer | Status |
|---|---|
| Custodial brokers: centralized exchanges, hosted-wallet providers, and any platform that takes custody and effects sales for customers | Must file, starting with 2025 transactions |
| Digital-asset payment processors (PDAPs) that accept digital assets on behalf of merchants | Must file, starting with 2025 transactions |
| Real-estate reporting persons (title and closing agents) when digital assets are used as consideration | Report the digital-asset payment for closings on or after January 1, 2026 |
| Non-custodial (“DeFi”) front-end service providers | Not required. The separate December 2024 rule that would have treated them as brokers was repealed by Congress under the Congressional Review Act in April 2025 |
| Miners, stakers, node operators and hardware-wallet makers | Not brokers under the final regulations |
What is reported, and when
| Tax year | Reported on the form | Filed |
|---|---|---|
| 2025 | Gross proceeds of every sale or exchange effected on or after January 1, 2025. Basis is not required | Recipient copy by February 17, 2026 (February 15 is a Sunday); IRS by March 31, 2026 if e-filed |
| 2026 | Gross proceeds, plus cost basis and holding period for “covered” digital assets: those acquired in the customer’s account on or after January 1, 2026 and held there since | Recipient copy by February 16, 2027 (February 15 is Presidents’ Day); IRS by March 31, 2027 if e-filed |
Two optional simplifications exist for high-volume, low-value activity: a broker may report sales of qualifying stablecoins in aggregate when a customer’s total is under $10,000 for the year, and sales of specified NFTs in aggregate under $600. Notice 2024-57 also tells brokers not to report six transaction types until further guidance: wrapping and unwrapping, liquidity-provider transactions, staking, lending, short sales, and notional principal contracts.
Almost every filer will be above the 10-return e-file threshold, so paper is not a practical option. Firms that already file 1099-B through the IRIS or FIRE systems add 1099-DA to the same feed; the form has its own record layout in Publication 1220.
The transition relief
The IRS acknowledged that brokers were being asked to build reporting, basis tracking and TIN collection at once, and issued relief in stages.
- Notice 2024-56 (June 2024). No penalties under sections 6721 and 6722 for 2025 gross-proceeds reporting when the broker makes a good-faith effort. No backup withholding on digital-asset sales in 2025. For 2026, no backup withholding on an account opened before January 1, 2026 if the broker submits the customer’s name and TIN to the IRS TIN Matching Program and receives a match. Special relief where a sale is paid in another digital asset the broker would otherwise have to liquidate to withhold.
- Notice 2025-33 (June 2025). Extended the relief by a year: good-faith penalty relief for 2026 reporting, no backup withholding on sales in 2026, and, for 2027, no backup withholding on pre-2026 accounts whose name and TIN the broker has matched through the TIN Matching Program.
The relief is dated, and each notice conditions the later years on TIN matching. Read the current text of Notices 2024-56 and 2025-33 before relying on a specific date; the IRS has already extended once and may change the conditions again.
Why the TIN is the whole game
A crypto platform’s backup-withholding exposure is different from a normal payer’s. It cannot simply hold back 24% of a wire; the “payment” is a sale, often settled in another token, and withholding means liquidating the customer’s asset. The relief above was written around that problem, and the price of the relief is a matched TIN: an account whose name and TIN the broker has run through the IRS TIN Matching Program and received code 0 for.
In practice that turns into three tasks for the compliance team: collect a certified TIN from every U.S. customer at onboarding (a W-9 or an equivalent electronic certification), bulk-match the existing customer base and solicit corrections before the next filing cycle, and keep the solicitation record that makes any penalty on a mismatched TIN waivable. KYC identity verification does not do this; it proves who the customer is, not that the IRS agrees on the name-TIN pair. The crypto and fintech industry page covers the operational side.
If you received one
A 1099-DA means a U.S. broker reported your sales to the IRS. The gross-proceeds figure is not your gain; you subtract your basis on Form 8949 and Schedule D, and for 2025 sales you will need your own basis records because the form does not carry them. If the name or TIN on the form is wrong, tell the broker and give a corrected W-9; an unresolved mismatch is what eventually leads to a B-Notice and 24% withholding on later sales.
Questions people ask
Does 1099-DA replace 1099-B for crypto?
Yes. For digital assets, 1099-DA is the form; 1099-B stays for securities. Some brokers reported crypto on 1099-B voluntarily before 2025.
Is there a dollar threshold?
No. Every sale or exchange is reportable regardless of amount, subject only to the optional aggregate reporting for small stablecoin and NFT sales.
Do foreign customers get a 1099-DA?
Generally not, if the broker holds a valid W-8 establishing foreign status. See the W-8 guide.
What about wallet-to-wallet transfers?
A transfer between the customer’s own wallets is not a sale and is not reported, though brokers must track transfers in for basis purposes from 2026.