EN 
FR Transactions effected on or after January 1, 2025
Brokers report gross proceeds
The IRS framework for digital asset transaction reporting
Form 1099-DA, Digital Asset Proceeds From Broker Transactions, is the official tax form finalized by the Internal Revenue Service (IRS) that requires custodial digital asset brokers to report information regarding digital asset transactions, such as cryptocurrencies and non-fungible tokens (NFTs).
According to the IRS, the form ensures that taxpayers receive statements containing the same information reported to the IRS, supporting accurate returns and improved compliance. As with other forms in the 1099 series, it provides third-party data that can be matched against a taxpayer's return, addressing the inconsistent documentation, incomplete transaction data and limited third-party verification that have characterized digital asset reporting. Form 1099-DA constitutes the United States element of a broader set of digital asset reporting regimes, alongside the OECD's Crypto-Asset Reporting Framework (CARF) and DAC8 in the European Union.
Before Form 1099-DA, sales and exchanges of digital assets produced no broker statement and taxpayers reported dispositions from their own records. There was no standardized format across platforms, taxpayers established cost basis and fair market value themselves, and the IRS held no third-party data against which to verify a return.
The requirement comes from changes to Internal Revenue Code section 6045 made by the Infrastructure Investment and Jobs Act (Public Law 117-58), implemented through final regulations published as Treasury Decision 10000 on July 9, 2024 and applying to sales effected on or after January 1, 2025.
Brokers report gross proceeds
Brokers report gross proceeds for all digital assets and basis for covered securities, while basis reporting for noncovered securities remains voluntary
Real estate reporting persons treated as brokers report the fair market value of digital assets paid by buyers
Businesses meeting the definition of a Digital Asset Broker must file Form 1099-DA. Under the IRS instructions, a broker is any person who, in the ordinary course of a trade or business, stands ready to effect sales of digital assets to be made by others. This includes businesses that regularly redeem digital assets they created or issued, and those effecting dispositions of customers' digital assets as an agent, dealer or digital asset middleman. Reporting is generally limited to U.S. digital asset brokers.
Businesses within scope include:
Under Form 1099-DA, brokers and other reporting entities are required to report the following information:
For Form 1099-DA purposes, a digital asset is a covered security only where it was acquired after 2025 in an account for which the broker provided custodial services, and held there until disposition. The broker reports the acquisition date, basis and the gain or loss classified as short-term or long-term alongside gross proceeds.
Everything else is noncovered: assets acquired before 2026, assets transferred in to the broker, and assets it did not hold custodially at acquisition. The broker may check the noncovered security box and report gross proceeds alone, leaving basis to the customer's records. A Form 1099-DA filed without that box checked, however, is treated as reporting a covered security, exposing the broker to penalties on the incomplete basis fields.
Generally, brokers file one Form 1099-DA per transaction with the IRS and furnish a corresponding statement to the customer. The form imposes no new substantive tax obligation, as gains and losses on digital asset dispositions were reportable before it existed; what changes is the information flow, with the IRS receiving the same transaction data as the customer and digital assets falling within the automated matching long applied across the 1099 series.
Recipients carry transactions to Form 8949, where the one-letter code identifies the applicable box by holding period and whether basis was reported to the IRS; totals flow to Schedule D and the Form 1040 digital asset question is answered. Reconciliation is the main work, since broker figures will not always match the taxpayer's records, and basis must be calculated before filing. All digital asset income, gains and losses are reportable whether or not a form is received, and corrections are requested from the issuing broker rather than the IRS.
Regnology Tax Hub offers a comprehensive solution for tax reporting that encompasses Form 1099-DA requirements. The platform enables digital asset brokers to calculate cost basis, generate client-ready PDF forms, and submit bulk electronic reports directly to the IRS using advanced machine-to-machine capabilities.
Regnology has decades of experience calculating and delivering Capital Gains and Cost Basis Reporting for TradFi, both in the United States and in more than 20 other countries. Leveraging proven technology and extensive experience, Regnology ensures accurate and efficient tax reporting for brokers.
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