Plain English
Form 1099-DA is the new IRS reporting form for digital asset brokers (US CEXes, certain custodians) starting with tax year 2025. Each transaction’s gross proceeds, cost basis (where known), and holding period are reported to the IRS and to you. The crypto equivalent of brokerage 1099-B for stocks.
How it actually works
For 2025, brokers report gross proceeds only. For 2026, they must also report cost basis on transferred-in assets where transferred via the new “transfer statement” regime — assets moved into a CEX from self-custody carry their declared basis. Non-broker DeFi reporting was paused in 2025; the broker definition continues to be litigated.
What it means for you
Reconcile every 1099-DA against your own tax tooling. The most common error: exchanges report sale proceeds without basis (because you transferred the coin in from self-custody), making it look like you have a 100% taxable gain. Provide the basis from your records; the IRS expects the gap. Plan to file with full Form 8949 detail and matching attachments, not just the 1099-DA totals.
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Educational content only. Not investment, tax, or legal advice.