New for Tax Year 2025:
Beginning in early 2026, individuals who engage in digital asset transactions (including cryptocurrency) during 2025 will begin receiving Form 1099-DA.
To learn more about how digital assets are taxed, visit the Digital Assets section on the CrossLink Tax Resource web page.
What Is Form 1099-DA?
Form 1099-DA is a new tax form that brokers must issue to both the IRS and their customers, reporting digital asset sales made during 2025. This includes:
- Cryptocurrencies
- Non-Fungible Tokens (NFTs)
- Asset-Backed Tokens
- Other digital assets
Who Must Issue Form 1099-DA?
- Brokers are required to issue Form 1099-DA for all digital asset sales they facilitated in 2025.
- Brokers include centralized exchanges such as Coinbase and Binance.
- Decentralized Finance (DeFi) platforms do not fall under the current definition of a broker and are not required to issue Form 1099-DA.
What Will Be Reported on Form 1099-DA?
For the 2025 tax year, brokers must report the following information on the Form 1099-DA:
- Proceeds of the sale
- Date of the sale
- Number of units sold
- Name of the digital asset sold
- Code for the digital asset
Note: For 2025, brokers are not required to report the cost basis of the digital asset sold.
If the basis is not reported, the individual is responsible for determining the cost basis using their own records of acquisition.
Additional information may also be included on the form by the broker if applicable to the transaction.
Reporting Requirements for Individuals
Even if an individual does not receive a Form 1099-DA, they are still required to report any digital asset transaction that results in a gain or loss on their 2025 federal income tax return.
Learn More
For more information, visit the following IRS resources:
