Form 1099-DA Is Here: New Digital-Asset Broker Reporting for 2025 and 2026

Part of our 2025 Tax Law Changes guide — the complete breakdown of the One Big Beautiful Bill Act.

Digital-asset tax reporting has long relied on taxpayers self-tracking every trade. That changes with the debut of Form 1099-DA, Digital Asset Proceeds From Broker Transactions — the IRS’s new information return for the crypto era. Here is what tax preparers should expect.

What Form 1099-DA is

Under final regulations, “brokers” — generally custodial digital-asset trading platforms and certain payment processors — must report their customers’ sales and exchanges of digital assets to the IRS and to the customer on Form 1099-DA, similar to how a 1099-B works for stocks.

The phase-in timeline

• Gross proceeds: brokers report gross proceeds from digital-asset dispositions occurring on or after January 1, 2025, with the first forms furnished to taxpayers in early 2026.
• Cost basis: basis reporting phases in for covered transactions occurring on or after January 1, 2026.
• Scope adjustments: certain reporting rules aimed at non-custodial and decentralized platforms were rolled back, so not every wallet or protocol issues a form.

What preparers should do now

• Expect clients with exchange accounts to receive Form 1099-DA — and to have questions about it.
• Reconcile the form against the client’s own transaction records; for 2025 activity, basis will often be missing, so the taxpayer must supply it.
• Watch for double-counting when assets are transferred between platforms.
• Reinforce recordkeeping now so 2026 basis reporting goes smoothly.

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This article is general information for tax and accounting professionals and is not legal, tax, or accounting advice. Rules in this area change frequently and have been subject to litigation and agency updates — always confirm the current guidance from the relevant authority (IRS, FinCEN, AICPA, or your state board) before acting or advising clients.