Quick answer
Form 1099-DA means your US crypto exchange will soon send your transaction data directly to the IRS — just like a stockbroker.
Regulations
United States
Form 1099-DA
New IRS form requiring US crypto brokers to report customer transaction data to the IRS and taxpayers from 2025 onwards.
United StatesUnderstanding Form 1099-DA on crypto
Form 1099-DA is a new IRS information reporting form that requires digital asset brokers — including centralised crypto exchanges — to report customer transaction data to the IRS and provide copies to taxpayers. Finalized in June 2024, broker reporting begins for transactions from 1 January 2025, with cost basis reporting phased in from 2026. This significantly increases crypto tax compliance pressure, as the IRS will receive direct data feeds from exchanges similar to existing 1099-B reporting for stocks. Brokers must report gross proceeds from digital asset sales; cost basis reporting follows later.
Form 1099-DA is a new IRS information reporting form that requires digital asset brokers — including centralised crypto exchanges — to report customer transaction data to the IRS and provide copies to taxpayers. Finalized in June 2024, broker reporting begins for transactions from 1 January 2025, with cost basis reporting phased in from 2026. This significantly increases crypto tax compliance pressure, as the IRS will receive direct data feeds from exchanges similar to existing 1099-B reporting for stocks. Brokers must report gross proceeds from digital asset sales; cost basis reporting follows later.
What this means for your crypto activity
Proceeds reporting from 2025
From 2025, US exchanges must report your crypto sale proceeds to the IRS on Form 1099-DA.
Cost basis phased in
Cost basis reporting (enabling automated gain/loss calculation) is phased in from 2026.
Taxpayer copy
You will receive a copy of your 1099-DA from your exchange, similar to a 1099-B for stock sales.
IRS cross-reference
The IRS will cross-reference your tax return against 1099-DA data — discrepancies will trigger notices.
DeFi scope
DeFi and self-custody wallets are outside the initial scope but may be added in future rulemaking.
- From 2025, US exchanges must report your crypto sale proceeds to the IRS on Form 1099-DA.
- Cost basis reporting (enabling automated gain/loss calculation) is phased in from 2026.
- You will receive a copy of your 1099-DA from your exchange, similar to a 1099-B for stock sales.
- The IRS will cross-reference your tax return against 1099-DA data — discrepancies will trigger notices.
- DeFi and self-custody wallets are outside the initial scope but may be added in future rulemaking.
Seeing it in action
Example scenario
In early 2026, Lisa receives a Form 1099-DA from Coinbase showing $45,000 in digital asset sale proceeds for 2025. She must use this (along with her own records) to complete Form 8949 and Schedule D. If her reported gains don't match the 1099-DA data, she risks an IRS notice. For the first time, the IRS has direct visibility into her exchange activity.
How this works across jurisdictions
- United States
Form 1099-DA broker reporting requirements finalised June 2024; gross proceeds reporting from 2025; cost basis reporting from 2026; applies to custodial brokers (CEXs) first; DeFi protocols under separate proposed rulemaking.
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