Crypto trading is no longer a corner the IRS can’t see. U.S. crypto exchanges and custodial platforms are required to use Form 1099-DA to report to the IRS the amounts customers receive from selling or exchanging digital assets, and they also send you a copy. Here are the key points to know when you receive this form, as well as the reporting issues for foreign exchanges.
What is Form 1099-DA? When will you receive it?
▸ It’s a new form specifically for reporting the sale or exchange of digital assets (cryptocurrency, stablecoins, certain NFTs), sent by “brokers” such as exchanges to both you and the IRS. For transactions in 2026, the forms will be sent in early 2027
What should you do after receiving Form 1099-DA?
▸ This form won’t calculate your gains or losses for you — you still need to calculate your own cost basis and report it on Form 8949 and Schedule D
▸ If the cost basis on the form is blank or doesn’t match your records, use your actual cost that you can support with documentation
▸ For coins transferred in from other platforms or wallets, and coins purchased before 2026, cost basis information is usually not provided, so be sure to keep your own purchase records
If you didn’t receive a Form 1099-DA, do you still need to report?
▸ Yes. DeFi platforms and some foreign brokers aren’t required to send Form 1099-DA, but the IRS has made clear that whether or not you receive the form, you must report all taxable digital asset transactions
▸ Coins received from mining, staking, or airdrops must also be included in income at their fair market value at the time received
▸ Regardless of which exchange you earned the income on, it must be reported
USCPA Luo Xia reminds you: the rules for calculating crypto cost basis and for reporting foreign exchange accounts are still evolving. Whether or not you receive a Form 1099-DA, be sure to keep complete records of your purchases and sales, and it’s recommended to consult a licensed, professional CPA to avoid penalties from unreported or misreported income!
If you have any other questions or need further assistance,
please contact us at USCPA Luo Xia +886 980919600
or email: ustaxproservice@gmail.com
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