Tax Compliance
What Is The New 1099-DA Form?
If you own cryptocurrency or other digital assets, you may be receiving a new IRS form this year called the 1099-DA.
February 17 marks the release date for many of these forms, and if you traded crypto on an exchange, there is a good chance this applies to you.
Here is what it means and what you need to do.
What Is the 1099-DA?
The 1099-DA stands for Digital Asset.
It is very similar to the Form 1099-B, which investors receive for stock trading activity. The key difference is that the 1099-DA is specifically for:
Cryptocurrency
Certain digital tokens
Other blockchain-based assets
Just like a 1099-B reports stock sales, the 1099-DA reports digital asset transactions to both you and the IRS.
If you sold, swapped, or disposed of crypto through a reporting platform, the IRS now receives a copy of that activity.
Who Is Sending These Forms?
You will generally receive a 1099-DA if you used:
Centralized crypto exchanges
Certain custodial platforms
Hot wallets connected to reporting exchanges
These platforms are now required to report taxable transactions.
What Is NOT Reported?
It is important to understand that not all digital asset activity is automatically reported.
Currently:
Some cold wallets
Certain decentralized finance platforms (DeFi)
Self-custodied transactions
are not required to issue 1099-DA forms.
That does not mean the activity is not taxable. It simply means the IRS may not automatically receive the reporting form.
You are still responsible for reporting gains and losses accurately.
Why This Matters
The IRS is increasing enforcement in the digital asset space. The 1099-DA is part of that effort.
If you receive this form:
You must provide it to your CPA
You will need to reconcile it with your actual transaction history
Any gains will be taxable
Failing to report it can trigger notices because the IRS will already have a copy.
How to Stay Organized
If you use multiple wallets, exchanges, or cold storage, tracking can get complicated quickly.
Many investors use tools like CoinTracker, which:
Links to exchanges
Connects to cold wallets
Aggregates transaction history
Calculates gains and losses
Having a consolidated report makes it much easier to ensure accuracy before filing.
Final Thoughts
The 1099-DA is not something to ignore.
It is essentially the crypto version of a 1099-B, and it signals continued IRS focus on digital asset reporting.
If you receive one this year:
Do not assume it is correct without review.
Do not leave it out of your tax documents.
Make sure your CPA has the full picture, including activity not reflected on the form.
Digital assets are here to stay. So is IRS reporting.
If you are actively trading crypto or holding significant digital assets, proactive tax planning is no longer optional. It is essential.
Author
Ryan Roe
Principal
Founder and dedicated tax expert ensuring client success with personalized strategies.
