What it is
Form 1099-DA is a new tax reporting form proposed by the IRS under regulations implementing the Infrastructure Investment and Jobs Act. It would require "digital asset brokers" – broadly defined to include exchanges, payment processors, and certain wallet providers – to report gross proceeds from sales and exchanges of digital assets, along with acquisition dates and cost basis, to both the IRS and the customer. This aims to improve tax compliance and provide taxpayers with clearer information for calculating capital gains and losses.
The implementation of Form 1099-DA will significantly impact how retail investors track and report their crypto taxes. Currently, many investors manually calculate gains and losses. This form would streamline the process, similar to how traditional brokerage accounts report stock sales. However, the broad definition of "broker" and the complexities of crypto transactions, such as self-custody or peer-to-peer trades, raise concerns about implementation challenges and potential privacy implications for individuals holding digital assets.
Why it matters
Form 1099-DA will simplify crypto tax reporting by providing transaction details, making it easier for you to calculate and report your capital gains and losses.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice