The 2025 Form 1099-DA Rulebook — What Every Digital Asset Investor Must Know

💥 The 2025 Form 1099-DA Rulebook — What Every Digital Asset Investor Must Know

Beginning in 2025, the IRS will receive unified digital asset transaction reports through a new information return called Form 1099-DA.
This reporting framework now applies to cryptocurrency, tokens, stablecoins, NFTs, and many other digital assets.
Because this is the first time U.S. taxpayers will experience broker-level reporting for crypto, misunderstanding the rules can easily lead to mismatched returns, unexpected tax bills, or IRS notices.

1️⃣ What Is Form 1099-DA?

Form 1099-DA is a new IRS information return required starting in 2025.
It mandates that digital asset brokers report detailed transaction data directly to the IRS — similar to how traditional brokerages report stock trades using Form 1099-B.

Until now, many crypto platforms did not issue cost-basis statements, leaving investors responsible for tracking their own records.
Under the new law, digital asset brokers must report acquisitions, disposals, and proceeds so that the IRS receives the same information you use to complete Schedule D and Form 8949.

2️⃣ Who Will Receive Form 1099-DA?

Any taxpayer who sells or disposes of digital assets through a platform classified as a “digital asset broker” may receive Form 1099-DA.
This group may include:

• Centralized exchanges (e.g., Coinbase, Kraken)
• Platforms offering crypto brokerage functions (e.g., Robinhood Crypto)
• Some DeFi service operators, depending on regulatory interpretation
• NFT marketplaces that meet the broker definition

If you sell or trade digital assets on a covered platform after 2025, you can expect to receive the form.

3️⃣ What Information Does the Form Include?

The 1099-DA reporting rules require brokers to send highly detailed transaction records, including:

• Digital asset identification (token name, contract address, etc.)
• Date acquired
• Cost basis
• Date sold or exchanged
• Gross proceeds
• Data required to compute capital gain or loss

With standardized reporting, the IRS will now match these figures against your tax return in the same way it matches stock trades.

4️⃣ How Form 1099-DA Affects Your Tax Filing

Receiving Form 1099-DA means the IRS already has a copy of your crypto transaction history.
If the numbers on your tax return do not align with what the IRS receives, the following may occur:

• CP2000 underreporting notices
• Additional tax assessments for omitted gains
• Reversal of overstated refunds
• Heightened audit exposure for large discrepancies

In short, Form 1099-DA brings digital assets into the same compliance framework used for securities — increasing transparency and reducing the likelihood of unreported taxable events.

5️⃣ Internal Links (EA Tax Guide)

6️⃣ Official External Resources

7️⃣ Frequently Asked Questions