Form 1099-DA Digital Asset Proceeds From Broker Transactions

Form 1099-DA, Digital Asset Proceeds From Broker Transactions, is the U.S. Internal Revenue Service information return for broker reporting of certain digital asset sales, exchanges, and other dispositions. As of June 4, 2026, the form is active for U.S. federal tax reporting: gross-proceeds reporting applies to covered broker transactions beginning January 1, 2025, while basis reporting is phased for certain transactions after 2025.

Purpose of Form 1099-DA

Form 1099-DA implements the digital asset broker-reporting framework under Internal Revenue Code section 6045 and Treasury Decision 10000. It does not determine whether a transaction is taxable or how a taxpayer should calculate gain or loss. Instead, it is an information-reporting form used by brokers to report proceeds from, and in some cases basis for, digital asset dispositions to the IRS and to customers.

The IRS links Form 1099-DA to the Infrastructure Investment and Jobs Act amendments to section 6045 and the Treasury/IRS final regulations on broker reporting. The form standardizes certain digital asset transaction information for federal tax reporting.

Who Form 1099-DA Covers

The current custodial-broker reporting framework applies mainly to U.S. brokers that take possession of digital assets being sold by customers. IRS examples include custodial digital asset trading platforms, certain hosted wallet providers, digital asset kiosks, and certain processors of digital asset payments. The IRS states that the final 2024 regulations do not include reporting requirements for commonly described decentralized or non-custodial brokers that do not take possession of the assets being sold or exchanged.

For 2025, IRS taxpayer guidance states that Form 1099-DA filing requirements generally apply to U.S. brokers. Customers transacting through foreign brokers may not receive the form, and the absence of a form does not by itself resolve a taxpayer’s separate federal income tax reporting position.

Information Reported on Form 1099-DA

Form 1099-DA generally reports proceeds from the sale or disposition of digital assets. The IRS states that transactions reported may include disposals, sales, exchanges for another digital asset, exchanges for U.S. dollars or other currency, trades for property, goods, or services, and certain payments of broker transaction costs using digital assets.

The reporting phase-in is important. IRS guidance states that brokers must report gross proceeds for transactions effected on or after January 1, 2025. Basis reporting applies to certain transactions effected on or after January 1, 2026. The 2026 instructions state that for sales after 2025, brokers must report basis information for digital assets that are covered securities, while basis reporting for noncovered securities is generally not required unless reported voluntarily under the instructions.

De Minimis Rules, Exceptions, and Transition Relief

The Form 1099-DA instructions include de minimis and optional reporting methods for some categories. These include separate rules for processors of digital asset payments, qualifying stablecoin sales, and specified NFT sales. The IRS also published post-release corrections for the 2025 instructions addressing these de minimis rules and optional reporting methods.

Other transition rules remain relevant. Notice 2024-57 identifies certain transactions for which brokers are not required to file Forms 1099-DA or furnish payee statements until further guidance, including wrapping and unwrapping transactions, liquidity provider transactions, staking transactions, digital asset lending transactions, short sales, and notional principal contracts. Notice 2025-33 extends transition relief for backup withholding and related penalties for certain brokers.

Status and Implementation Timeline

The final custodial broker regulations, TD 10000, were published July 9, 2024 and became effective September 9, 2024. The first Form 1099-DA reporting cycle covers 2025 transactions reported in 2026. For tax year 2025, IRS guidance states that Form 1099-DA is excluded from the Combined Federal/State Filing Program, so brokers must file federal returns directly with the IRS and address any separate state reporting obligations outside that program.

A separate December 2024 DeFi broker rule was disapproved under the Congressional Review Act. Treasury and the IRS later removed that rule from the Code of Federal Regulations, stating that it has no legal force or effect. Separately, Treasury and the IRS issued proposed 2026 electronic-furnishing regulations that would permit brokers to follow new optional rules for Form 1099-DA statements required to be furnished on or after January 1, 2027.