Form 1099-DA is the IRS information return brokers use to report proceeds from digital asset transactions — including sales and exchanges of cryptocurrency, stablecoins, and NFTs. If you are a custodial broker who processed digital asset transactions for customers on or after January 1, 2025, you are required to file Form 1099-DA with the IRS and provide a copy to each recipient.
Our platform makes 1099-DA eFiling fast, accurate, and IRS-compliant — even for high-volume brokers handling thousands of transactions.
Form 1099-DA — formally titled Digital Asset Proceeds from Broker Transactions — is the IRS information return created under final regulations published in 2024. It is used to report gross proceeds (and, beginning with 2026 transactions, cost basis) from digital asset sales handled by custodial brokers. Tax year 2025 is the first required filing year.
Recipients use the information on Form 1099-DA to complete Form 8949 and Schedule D on their federal income tax return.
You must file Form 1099-DA if you are a custodial broker — meaning you take possession of digital assets on behalf of customers — and you facilitated:
Brokers required to file include:
Note: Decentralized (non-custodial) brokers are not yet subject to these requirements. Real estate professionals who receive digital assets as payment must report the fair market value of those assets for transactions closing on or after January 1, 2026.
|
Milestone |
Deadline |
|
Recipient copies furnished |
February 15 of the year following the transaction |
|
IRS eFile submission |
March 31 |
|
IRS paper filing |
February 28 |
Phase-in schedule:
Late or incorrect filings may result in penalties of $60–$310 per form, with intentional disregard penalties starting at $630 per form with no cap.
What is Form 1099-DA used for?
Form 1099-DA is used to report gross proceeds — and eventually cost basis — from digital asset transactions such as cryptocurrency sales handled by custodial brokers, starting with tax year 2025.
Who is required to file Form 1099-DA?
Custodial brokers — including crypto exchanges, hosted wallet providers, digital asset kiosks, and certain payment processors — must file Form 1099-DA for U.S. customer transactions involving digital assets on or after January 1, 2025.
When is Form 1099-DA due?
Recipient copies are due by February 15 of the following year. IRS eFile submissions are due March 31.
Is cost basis required on Form 1099-DA?
Not for 2025 transactions. Basis reporting is required beginning with digital assets acquired on or after January 1, 2026. Brokers should begin capturing basis data now.
Are decentralized exchanges required to file 1099-DA?
No. Currently, only custodial brokers who take possession of digital assets are subject to 1099-DA reporting. Guidance for decentralized brokers is expected in future IRS rulemaking.
What happens if a customer doesn’t receive a 1099-DA?
Even without a 1099-DA — for example, if they used a foreign or decentralized platform — taxpayers are still required to report all digital asset gains, losses, and income on their federal tax return.
Can I file multiple 1099-DA forms at once?
Yes. Our platform supports bulk uploads to handle high-volume broker filings efficiently.
What IRS penalties apply for missing or incorrect 1099-DA forms?
Penalties under Sections 6721 and 6722 range from $60 to $310 per form based on how late the filing is. Intentional disregard penalties start at $630 per form with no cap.
Stay ahead of digital asset reporting requirements. Start your free 7-day trial and file 1099-DA forms directly with the IRS today.
