Form 1099-DA is the IRS information return that brokers and exchanges file to report your digital asset sales. It shows gross proceeds for every sale and, starting with assets you acquired at that broker on or after January 1, 2026, the cost basis. A copy goes to the IRS, which matches it against your Form 8949. The form usually overstates your gain, because it cannot see the basis of coins you transferred in.
Form 1099-B reports stock and securities sales, usually with basis, because shares rarely leave the broker. Form 1099-DA reports digital asset sales, and basis is missing whenever coins were transferred in, which for most crypto investors is most of the time. The reporting rules are parallel; the reconciliation burden is not.
Before 2025, most crypto activity was invisible to the IRS unless you reported it yourself. Now every sale on a US broker arrives with a form the IRS already holds, and the matching is automated. The problem is what the form leaves out: for coins you moved in from another wallet, an earlier year, or self-custody, the basis box is blank, and a blank box is not zero. A return built from the form alone taxes your entire sale as profit. A return that reports less than the form shows, without the adjustment that explains why, triggers a CP2000 notice. The 2025 forms, mailed in early 2026, carried proceeds only; the 2026 forms, arriving by February 2027, are the first to carry basis, and they will be wrong for most long-term holders.
| Box | What it shows | What to check |
|---|---|---|
| 1a | Code for the type of digital asset and units sold | Confirm the asset and quantity match your records |
| 1b | Date acquired (covered assets only) | Blank for transferred-in coins; supply from your records |
| 1c | Date sold or disposed | Drives short-term vs long-term with 1b |
| 1d | Gross proceeds | The number the IRS matches; must reconcile to your return |
| 1e | Cost or other basis (covered assets only) | Blank or zero for noncovered; never report as zero |
| 1f | Accrued market discount / wash sale loss (rare for crypto) | Generally not applicable to directly held crypto |
| 2 | Short-term, long-term, or ordinary indicator | Broker's view; correct if it lacks your acquisition date |
| 3 | Check if proceeds are from a qualifying stablecoin or specified NFT | Stablecoin sales may be aggregated |
| 4 | Federal income tax withheld (backup withholding) | Claim it on Form 1040 if present |
| 5 | Noncovered asset indicator | If checked, the basis is yours to document |
| 11 | Transfer-in information, where the broker reports a coin was received from another wallet | Your evidence that basis carried over |
| Tax year | Forms arrive | What the broker reports | What you supply |
|---|---|---|---|
| 2025 | February 2026 | Gross proceeds only | All cost basis |
| 2026 | February 2027 | Proceeds; basis for covered assets acquired at that broker on or after Jan 1, 2026 | Basis for anything transferred in or bought earlier |
| 2027 onward | Each February | Same, with more assets becoming covered over time | Basis for transferred and self-custody coins, indefinitely |
It is the tax form brokers and exchanges use to report your crypto sales to the IRS, starting with 2025 transactions. It shows gross proceeds and, for assets acquired at that broker from 2026 on, cost basis.
Brokers must furnish it by February 15 following the tax year. Forms for 2025 sales arrived in February 2026; forms for 2026 sales arrive by February 15, 2027.
Because the broker only knows what happened on its platform. Coins you transferred in from another wallet or exchange arrive with no purchase history, so the basis box is empty. You supply the basis on Form 8949.
Yes. The form is a reporting tool for brokers, not the trigger for your obligation. Every sale, swap, and spend is reportable whether or not a form exists.
Yes, if the swap happened on a broker. Each side is a sale of what you gave up, and the broker reports the proceeds. Swaps on decentralized exchanges are not reported by anyone and are still taxable.
Report those lines on Form 8949 with the adjustment code showing they were transfers, and keep the wallet records that prove it. Do not ignore the form; the IRS has it.
If proceeds on the return are lower than the forms total, expect an automated CP2000 notice proposing tax on the difference. Basis differences are normal and are explained by adjustment codes; proceeds differences are not.
Every US broker: Coinbase, Kraken, Gemini, Robinhood, Crypto.com's US entity, PayPal and Venmo for crypto sales, and hosted wallet providers. Foreign exchanges that do not serve US customers under US rules generally do not.
Not by itself. It means you sold. Whether you owe depends on your basis and holding period, which is what the return determines.
The 1099-B covers stocks and securities; the 1099-DA is its digital asset equivalent. The rules are similar, but far more 1099-DA lines lack basis because crypto moves between platforms.
Yes, though brokers may aggregate qualifying stablecoin sales into a single line. The gains and losses are usually tiny but still reportable.
Both. Each line goes on Form 8949 with the correct basis and any adjustment code; the totals flow to Schedule D.
Compare it to what you reported. If the corrected proceeds differ, file Form 1040-X; if only the basis changed and you already reported the correct basis, no amendment is needed, but keep the corrected form.
Software imports the form well and handles the basis badly, because the basis is the part the form does not have. For coins that moved between platforms, the reconciliation has to be done before the import.
Yes. That is the point of the form. The IRS matches box 1d proceeds against Form 8949 and issues a notice when the return shows less.
Yes. Losses are reported the same way and can offset gains and up to $3,000 of ordinary income. An unreported sale with a loss still looks like an unreported sale to the matching program.
Gather every 1099-DA you received, plus complete export files from each exchange and wallet address you used during the year, including platforms that closed. If any coins moved between platforms, the reconciliation is where the work is. 1099-DA reconciliation at Gordon Tax is billed hourly with a written estimate up front, and it produces a Form 8949 that matches what the IRS already has.
Related guides: gross proceeds vs gain, covered vs noncovered assets, cost basis, transfer vs disposal, and the Form 1040 digital asset question.
Source: IRS Form 1099-DA and instructions; Treas. Reg. 1.6045-1; IRS Notice 2026-20
Last reviewed September 17, 2026. Tax rules change; confirm current law before acting.
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