As digital assets such as cryptocurrency and non-fungible tokens continue to move into the financial mainstream, the Internal Revenue Service has introduced a major reporting change.
Beginning with transactions occurring January 1, 2025, taxpayers will start receiving Form 1099-DA, Digital Asset Proceeds From Broker Transactions, during the 2026 filing season. This marks the first standardized federal tax reporting form specifically designed for crypto and NFT transactions.
For investors, business owners, and tax professionals, this is not just a new form. It is a structural shift in digital asset tax compliance.
Form 1099-DA is a new IRS information return created to capture proceeds from digital asset transactions conducted through brokers.
It applies to:
Prior to this change, digital asset investors were largely responsible for self-reporting gains and losses using internal transaction histories. Documentation varied widely between platforms, and reporting inconsistencies were common.
Form 1099-DA brings digital assets closer to the reporting standards already used for stocks and securities.
You may receive Form 1099-DA if, during 2025, you:
The form will be issued in early 2026, typically by late January.
Receiving the form does not automatically mean additional tax is owed. It does mean the IRS now has a record of your proceeds and will expect those transactions to be reflected on your return.
For the 2025 tax year, brokers are generally required to report:
The total amount received from the sale or exchange of digital assets.
Dates of disposition and identifying information about the asset.
Cost basis reporting is not broadly required for 2025, though this is expected to expand in future years.
Because cost basis may not be included, taxpayers must maintain accurate internal records to calculate capital gains or losses properly using Form 8949 and Schedule D.
This change significantly increases transparency in the digital asset ecosystem.
For taxpayers, it reduces ambiguity around what must be reported. For tax professionals, it increases the need for reconciliation between client records and third-party reporting. For the IRS, it strengthens automated matching and compliance enforcement.
In practical terms, mismatches between a filed return and a 1099-DA could trigger IRS notices.
This is especially important for:
To stay ahead of the changes:
For firms managing multiple clients with digital asset exposure, manual reconciliation will quickly become inefficient.
This is where integrated compliance technology becomes essential.
Bizora helps CPAs, tax attorneys, and business owners monitor reporting changes like Form 1099-DA, centralize transaction data, and prepare audit-ready documentation without scrambling at filing time.
Form 1099-DA is part of a broader modernization effort within the IRS to bring digital asset taxation in line with traditional financial reporting frameworks.
The message is clear. Crypto is no longer operating in a gray area.
Standardized reporting increases accuracy, reduces underreporting, and shifts digital asset tax planning from reactive to proactive.
Professionals who adapt early will be positioned to guide clients confidently through the 2026 filing season and beyond.
The introduction of Form 1099-DA signals a permanent evolution in how digital assets are taxed in the United States.
Taxpayers should begin preparing now by tightening recordkeeping systems and reviewing internal compliance processes. Firms should educate clients and upgrade reporting workflows before 1099-DA forms begin arriving.
Early preparation will reduce errors, limit notice risk, and streamline capital gains reporting.
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