Form 1099-DA
A U.S. tax information form that crypto brokers and exchanges are required to send, reporting a customer's digital asset sale proceeds directly to the IRS.
Form 1099-DA is a U.S. tax information reporting form that crypto brokers, including centralized exchanges, are required to issue to customers and file with the Internal Revenue Service, reporting the proceeds from a customer's digital asset sales during the year. This brings crypto reporting more in line with how brokers have long reported stock and securities sales, giving the IRS direct, broker-reported visibility into crypto sale proceeds rather than relying solely on taxpayers to self-report.
Because Form 1099-DA reporting is generated directly by the broker or exchange rather than by the taxpayer, it substantially raises the practical stakes of accurately reporting crypto transactions, since the IRS now receives independent, third-party confirmation of at least the proceeds side of covered transactions. Taxpayers are still responsible for accurately calculating their own cost basis (see Kaavon's "Cost Basis" glossary definition) and resulting gain or loss on Form 8949 (see Kaavon's "Form 8949" glossary definition), since a 1099-DA's broker-reported cost basis information may be incomplete, particularly for assets originally acquired or held outside that specific broker's platform.
Examples
- A centralized exchange issuing a Form 1099-DA reports a customer's crypto sale proceeds directly to the IRS, independent of whatever the customer reports themselves.
- A taxpayer who moved crypto between wallets and exchanges before eventually selling may need to supply their own accurate cost basis information, since a broker's Form 1099-DA may not capture it completely.