- Out of an earlier version, the new U.S. tax form for crypto investors’ brokerage accounts has been significantly shrunk.
- For those paying U.S. crypto taxes, crypto’s 1099 form will “bring more ease and clarity” says IRS authorities.
The 1099-DA is the revised draft form the U.S. Internal Revenue Service (IRS) has produced for crypto brokers and investors reporting proceeds from specific transactions.
Beginning in 2026, crypto investors using brokers—which, for now mostly refers to centralized crypto exchanges like Coinbase and Kraken—will get the 1099-DA from those brokers to record specific crypto sale and exchange events to the IRS as taxable events.
Released Friday, the revised 1099-DA is more compact than the original draft of the tax reporting form that the IRS floated in April. Removed are the areas where investors may fill in their wallet addresses and transaction IDs, which caused major privacy issues upon form release. Just the date is now sufficient; the timing of the pertinent transactions is not required.
The original form also featured a box requesting the filer to name the type of broker they are—including “kiosk operator,” “digital asset payment processor,” “hosted wallet provider,” “unhosted wallet provider,” and “other.” The revised form does not now feature that box.
Crypto lawyer Drew Hinkes, a Miami-based partner at legal firm K&L Gates, on X said, “massively improved/less burdensome and requires considerably less data reporting.”
This draft of the 1099-DA comes two months following the IRS’s final rules on crypto broker reporting criteria. Later this year, the IRS reportedly intends to publish guidelines for distributed and non-custodial brokers in a separate set of rules.
IRS Office of Digital Asset Initiative Directors Raj Mukherjee and Seth Wilks in an emailed statement said “The new Form 1099-DA will help taxpayers comply with the complex world of digital assets.” Beginning in tax year 2025, “it complements the 6045 broker rules issued recently and offers a vehicle in which taxpayers can declare their in-scope digital asset gains and losses. This will provide more simplicity and clarity to the digital asset information reporting process, therefore marking a significant advance in that field.
The public has thirty days to offer the IRS input regarding the proposed 1099-DA.
