For years, Bitcoin holders who sold through an exchange often got inconsistent tax paperwork, or none at all. Some platforms sent a Form 1099-B, some sent a 1099-MISC for rewards, and others simply offered a downloadable transaction history. That is changing. U.S. crypto brokers now issue a dedicated information return, Form 1099-DA (“DA” for digital assets), for many sales and exchanges.

This article is a high-level, plain-language overview of what the form is and how to think about it. It is not advice about any particular platform or return.

What Form 1099-DA is

Form 1099-DA is an information return that a broker files with the IRS and sends to you. It reports certain dispositions of digital assets, such as selling Bitcoin for dollars or, in many cases, trading it for another asset through the broker. Under the IRS rules for this form, reporting began with transactions in calendar year 2025, so many people see the form for the first time when preparing their 2025 returns in early 2026.

The key idea is simple: the IRS is getting a copy of what your broker reports. If the numbers on your return do not line up with what the broker filed, that mismatch can generate questions later.

Gross proceeds first, cost basis phased in

The rollout has been phased. For the first reporting year, brokers were generally required to report gross proceeds, meaning what you received when you sold, but not necessarily your cost basis, meaning what you originally paid. Basis reporting is being phased in for certain assets acquired in the same account starting in 2026.

That distinction matters. Proceeds alone do not tell anyone whether you had a gain or a loss. If your form shows proceeds but a blank or missing basis, you still need to supply your basis from your own records. Leaving basis off does not make it zero in reality, but if you do not report it properly, the return may end up overstating your gain.

What the form may not show

A broker can only report what happened on its own platform. Common gaps include:

• Bitcoin you bought somewhere else and transferred in, where the receiving broker may not know your original cost
• Activity in self-custody wallets, which no broker sees
• Coins you moved between your own wallets and accounts
• Older purchases made years ago on platforms that no longer exist
• Income events such as mining or certain rewards, which may be reported differently or not at all

In other words, the form is a starting point, not a complete picture. Your own records still matter, and arguably matter more now that the IRS sees the proceeds side.

Reconciling the form with your records

When the form arrives, compare it line by line with your own transaction history before you file. Some practical checks:

• Do the sale dates and quantities match what you actually sold?
• Is each sale reported once, without duplicates from transfers between accounts?
• Where basis is shown, does it match your records for those specific coins?
• Where basis is missing, can you document what you paid and when?
• Do short-term and long-term holding periods line up with your own dates?

Sales generally still flow onto Form 8949 and Schedule D, just as they did before. The new form does not change how gain is calculated. It changes how much the IRS already knows when your return arrives.

If something looks wrong

Mistakes happen, especially in early years of a new form. If a figure looks incorrect, start by contacting the broker and asking whether a corrected form is coming. Keep a record of that request. If the broker’s number stands but you have good documentation of a different basis, a tax professional can help you report your figures properly and keep the support on file.

Do not simply ignore a form you received. Unreported proceeds are one of the most common reasons for an IRS notice.

Records to keep

• Every Form 1099-DA and any corrected versions
• Full transaction exports from each exchange or broker you have used
• Purchase records showing date, quantity, and U.S. dollar cost for each lot
• Transfer records showing coins moving between your own wallets and accounts
• Notes on which lots you sold if you use specific identification
• Correspondence with brokers about missing or incorrect figures

Practical tip

Before tax season, download your full history from every platform you use, not just the ones that sent a form. When the 1099-DA arrives, you will already have the data you need to confirm it, fill in missing basis, and spot errors early, instead of scrambling in April.

This article is general information about U.S. federal tax reporting for digital assets. It is not tax, legal, or accounting advice for your situation. Reporting requirements and their effective dates can change, and individual facts matter; consult a qualified tax professional before filing or making decisions.