Who receives a 1099-DA? Understanding the new IRS form for digital asset reporting
Sep 23, 2025・4 min read
The world of cryptocurrency looks very different today than it did a few years ago. With big institutions entering the space and clearer rules taking shape, the sun is setting on the “Wild West” days of digital assets. As a result, the IRS has introduced a new tax form specifically designed for crypto tax reporting in 2025 and beyond – Form 1099-DA.
In this guide, we’ll explain the IRS’s rules for who receives a 1099-DA and who is exempt from receiving the form. We’ll also tell you what to do if you don’t receive a 1099-DA but still traded or earned crypto.
What’s Form 1099-DA?
Form 1099-DA is a document the IRS introduced for tax year 2025 and beyond to report cryptocurrency-related sales and exchanges. Officially titled “Digital Asset Proceeds from Broker Transactions,” it records digital asset sales, exchanges, and dispositions, similar to how Form 1099-B handles traditional securities.
The digital asset tax form applies to cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), non-fungible tokens (NFTs), stablecoins like Tether (USDT), and other tokenized assets that are disposed of through a custodial broker.
Responsibility for issuing Form 1099-DA falls on brokers as defined under Internal Revenue Code §6045(c)(1)(D), including certain custodial platforms that facilitate digital asset transactions on behalf of customers, reflecting the IRS’s broader effort to improve compliance and transparency in digital asset taxation.
Do I get a 1099-DA for crypto?
If you're a U.S. taxpayer who sells, trades, or exchanges digital assets through a platform classified as a digital asset broker under IRS regulations, you may receive Form 1099-DA. These brokers, typically custodial exchanges such as Coinbase, Kraken, and Gemini, are required to report digital asset dispositions to the IRS beginning in tax year 2025.
Who issues Form 1099-DA?
Form 1099-DA is issued by platforms classified as digital asset brokers under IRS regulations. According to the IRS, a broker includes any person who, in the ordinary course of business, facilitates the sale or disposition of digital assets on behalf of others. This includes entities that act as agents, dealers, or middlemen in digital asset transactions, or that redeem digital assets they issued.
Reporting is required only by U.S. digital asset brokers, which generally include:
- U.S.-based crypto-native exchanges that custody user assets and process trades;
- Non-crypto-native financial platforms (such as stock brokerages or payment apps) that have added digital asset functionality; and
- Other intermediaries that execute or settle sales of digital assets for customers.
Non-custodial platforms, decentralized exchanges (DEXs), and self-hosted wallets are not subject to Form 1099-DA reporting requirements. While earlier drafts of the broker regulations sought to include these entities, those provisions were removed in the final rulemaking. Any future expansion to cover non-custodial or DeFi platforms would require a new regulatory process.
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What if you don’t receive a 1099-DA?
Not receiving a Form 1099-DA does not eliminate your obligation to report digital asset activity. If you sell, exchange, or otherwise dispose of digital assets, regardless of whether a broker issues you a form, you are still required to report any resulting gain, loss, or income on your tax return.
You may not receive a Form 1099-DA if:
- You use a non-U.S. exchange: Foreign platforms are not subject to U.S. broker reporting rules under §6045.
- You transact through a self-custody wallet: Wallets like Coinbase Wallet, MetaMask, Phantom, or Ledger are not brokers and are therefore not required to file Form 1099-DA.
- You engage in DeFi activity: Non-custodial protocols and decentralized platforms were excluded from the final broker definition in the IRS’s 2024 regulations and are not required to issue 1099-DA forms.
Regardless of the platform used, the IRS expects taxpayers to report all taxable digital asset transactions. To remain compliant, you must track each transaction’s cost basis, holding period, and proceeds. This can be done through specialized crypto tax software like CoinTracker, or through carefully maintained manual records. These figures must be reported on your tax return, even if you never receive a Form 1099-DA.
Who’s exempt from reporting requirements?
Certain types of recipients are exempt from receiving Form 1099-DA, even if they dispose of digital assets through a broker. These exemptions generally align with the IRS's broader rules on information return reporting. This includes, but is not limited to:
- Corporations, both domestic and foreign
- Charitable organizations
- Individual retirement arrangements (IRAs)
- The United States or any state or a political subdivision of the United States or any state
- Exempt foreign persons
- Dealers in securities
- Financial institutions, including banks, credit unions, and similar entities
These exemptions apply to the broker’s obligation to issue the form, not to the recipient’s obligation to report taxable events. Even if you do not receive a 1099-DA, you may still be required to report gains or income on your return.
Stay compliant with CoinTracker
Gains and income from digital assets have always been taxable under U.S. law. But until recently, enforcement relied heavily on self-reporting. Form 1099-DA marks a shift toward standardized third-party reporting, giving the IRS broader visibility into crypto activity starting with the 2025 tax year.
Whether you dispose of digital assets through a centralized exchange or other broker, all taxable transactions must be reported. Even if you don’t receive a 1099-DA, you remain responsible for reporting all sales, exchanges, and other taxable dispositions, whether the transaction occurs through a custodial or non-custodial platform. Maintaining accurate records ensures your activities are properly reflected on your tax return.
Reporting crypto taxes might seem overwhelming, but CoinTracker makes it simple. Join over 2 million users who trust us for hassle-free tax reporting. Start for free today.
FAQ
Who will get a 1099-DA?
U.S. taxpayers may receive Form 1099-DA if they dispose of digital assets through a platform classified as a digital asset broker under IRS rules. This includes sales, trades, and other taxable dispositions. The form is issued regardless of transaction size, but only by platforms subject to IRS broker reporting requirements.
Do I need to report crypto if I didn’t get a 1099-DA?
Yes. Even if you do not receive a Form 1099-DA, you are still required to report all taxable crypto transactions on your tax return, including sales, exchanges, and other dispositions.
Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.