Ta-DA! The IRS conjures a new form you’ll need to file your taxes

The IRS has introduced Form 1099-DA to improve reporting of digital asset transactions, starting with the 2026 tax filing season (for the 2025 tax year). If you’ve bought, sold, or exchanged cryptocurrency or other digital assets, this new form may soon show up in your mailbox—or inbox.

What Will Be Included
Form 1099-DA is designed to capture gross proceeds from the sale or exchange of digital assets. Brokers and trading platforms will be required to issue it, similar to how stock sales are reported on Form 1099-B. Expect to see:

-Basic identifying information about you and the broker.
-Details of the digital asset sold (e.g., type of coin or token).
-Dates of acquisition and sale (if available).
-The gross proceeds of the sale.

What May Not Be Included
It’s important to note that Form 1099-DA may not provide your cost basis (what you originally paid for the asset). Without this, the form alone may not show your taxable gain or loss—just the proceeds. Additionally:

-Transfers between your own wallets may not be reported.
-Income from mining, staking, or airdrops will still be reported elsewhere (e.g., Form 1099-MISC).

When to Expect It
Brokers will need to provide a statement reflecting the information reported to the IRS on Form 1099-DA to taxpayers by Feb. 17.

Decentralized Finance (DeFi) brokers and some foreign brokers are not required to file a Form 1099-DA with the IRS or furnish a statement to taxpayers showing their digital asset transaction(s). Taxpayers should understand their tax obligations whether or not they received a statement showing all taxable digital asset activities.

What You Should Do

-Keep good records of digital asset purchases, transfers, and sales. – including cost basis, dates, and transaction fees.
-Compare your own records with the 1099-DA once you receive it, since missing information can affect your reported gains or losses.
-Use crypto tax software or a professional if you trade frequently or across multiple platforms.

If you need help getting ready, give us a call! We do suggest sooner-rather-than-later if you have a complex digital asset trading history.