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    IRS Form 1099-DA

    Form 1099-DA: Digital Asset Proceeds

    Report the sale or exchange of digital assets (cryptocurrency and other digital assets) by brokers and digital asset middlemen.

    First Tax Year

    2025 (mandatory for 2026 and later)

    Filing Deadline

    February 28 (paper) or March 31 (electronic)

    Asset Types

    Cryptocurrency, NFTs, stablecoins

    Overview

    Form 1099-DA is a new form introduced for the 2025 tax year to report the sale or exchange of digital assets. This form is used by brokers, including digital asset trading platforms, payment processors, and other digital asset middlemen.

    The form reports gross proceeds from digital asset transactions and may include basis information for covered securities. For 2025, reporting of gross proceeds is mandatory while basis reporting is voluntary. Starting in 2026, both gross proceeds and basis reporting will be mandatory for covered securities.

    Who Must File

    Required Filers

    • •Digital asset brokers and trading platforms
    • •Digital asset middlemen (exchanges, payment processors)
    • •Businesses that effect sales of digital assets for customers
    • •Payment processors handling digital asset transactions

    Exceptions & Notes

    • ✕For 2025 only: Basis reporting is voluntary (mandatory starting 2026)
    • ✕Non-custodial peer-to-peer transactions without intermediary
    • ✕Personal wallets and self-custody solutions

    Form Structure & Instructions

    Here's what information is required in each section:

    Account and Transaction Information

    Details about the customer and their digital asset account

    Top
    Broker Information
    Name, address, and TIN of the broker or digital asset middleman
    Middle
    Customer Information
    Name, address, and TIN of the customer/taxpayer
    Middle
    Account Number
    Customer's account number with the broker

    Transaction Details

    Information about digital asset sales and exchanges

    Box 1a
    Date of Sale or Exchange
    Date the digital asset was sold or exchanged
    Box 1b
    Type of Digital Asset
    Description of the digital asset (e.g., Bitcoin, Ethereum, NFT)
    Box 1c
    Gross Proceeds
    Total amount received from sale or exchange before fees/commissions
    Box 1d
    Covered/Noncovered
    Indicator whether security is covered (basis reporting required in 2026+) or noncovered

    Cost Basis Information (Starting 2026 for Covered)

    Basis information for determining capital gains/losses

    Box 1e
    Cost or Other Basis
    Original cost or adjusted basis of the digital asset (voluntary for 2025, mandatory 2026+)
    Box 1f
    Date Acquired
    Date the digital asset was originally acquired
    Box 1g
    Adjustment Code
    Codes for basis adjustments (wash sales, gifts, etc.)
    Box 1h
    Adjustment Amount
    Dollar amount of any basis adjustments

    Additional Information

    Supplementary reporting details

    Box 2
    Short-term or Long-term
    Indicator for capital gain/loss holding period classification
    Box 3
    Federal Income Tax Withheld
    Backup withholding if applicable
    Box 4
    State Information
    State tax withheld and state identification

    Important Filing Notes

    Phased Implementation

    For 2025, gross proceeds reporting is mandatory but basis reporting is voluntary. Starting in 2026, both gross proceeds and basis are mandatory for covered securities.

    Covered vs. Noncovered

    Covered securities are those acquired after the effective date where basis reporting is required. Noncovered securities are older holdings or those where basis reporting is not mandated.

    Digital Asset Definition

    Digital assets include cryptocurrencies (Bitcoin, Ethereum), stablecoins, NFTs, and other digitally recorded property on cryptographically secured distributed ledgers.

    Broker Responsibility

    Digital asset brokers and middlemen are responsible for tracking transactions, calculating proceeds, and determining covered/noncovered status for customer transactions.

    Additional Resources

    IRS Form 1099-DA (PDF)
    Download the current year form
    Instructions for Form 1099-DA
    Complete IRS instructions
    Digital Assets Guidance
    IRS guidance on digital asset taxation
    Broker Reporting Requirements
    General broker reporting information

    Stay Compliant with Digital Asset Reporting

    Let Plain Dot handle your Form 1099-DA filing with automated digital asset transaction tracking, basis calculation, and timely reporting.

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