Form 1099-DA Filing to Report Digital Assets

Starting the 2025 tax year, brokers and exchanges will be required to file Form 1099-DA at year-end to report digital asset sales.

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Form 1099-DA: What You
Need to Know

The absence of standardized reporting in crypto has made it difficult for investors to calculate tax liabilities and left the IRS with an incomplete view of digital asset activity. To resolve this, the IRS introduced Form 1099-DA, requiring brokers, custodians, and platforms to report transactions like sales, exchanges, and other taxable events.

Over 50 million 1099-DA forms could be filed by 2025—are you ready to meet the demand?

Quick and easy 941 filing
Digital Assets

What Digital Assets Are Reported on
Form 1099-DA?

Form 1099-DA is a new IRS form created to report transactions involving certain digital assets. These digital assets include cryptocurrencies and other types of digital property that are traded, sold, or exchanged.

Examples of digital assets include:

  • Cryptocurrencies (e.g., Bitcoin, Ethereum)
  • Stablecoins
  • Non-fungible tokens (NFTs)
  • Any digital representation of value recorded on a distributed ledger

If your platform or business handles these types of digital assets, then you need to report them on Form 1099-DA.

1099-DA Deadlines for 2025 Tax Year

To avoid IRS penalties, brokers and digital asset platforms must meet the following deadlines for filing and recipient distribution.

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Recipient Copy Distribution

February 17, 2026

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Paper Filing with IRS

February 28, 2026

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Electronic Filing with IRS

March 31, 2026

Information Required to File Form 1099-DA

Discover the key information needed to file Form 1099-DA easily.

File Form 1099-DA Electronically
01

Filer’s Info

Name, address, and TIN

02

Recipient Info

Name, address, TIN, account number, and
CUSIP number

03

Digital Asset Transaction Info

  • Digital asset name and code
  • Number of digital assets units sold
  • Date acquired and date sold of the digital asset
  • Gross proceeds from the sale of
    digital assets
  • Adjusted basis amount of the digital
    asset sold
  • Accured market discount of digital assets
04

Federal Income Tax Withheld

05

Optional Reporting Method

  • Indicate the type of digital asset (e.g., qualifying stablecoins or specified NFTs)
  • Number of transactions using the optional reporting method
  • For specified NFTs, report gross proceeds from primary sales by the creator or minter

Note: Collecting W-9s is essential for accurate 1099-DA filing. Use TaxBandits to request W-9 forms from recipients securely.


How TaxBandits Helps You Comply with the IRS 1099-DA Filing Requirement

Whether you're reporting to the IRS or sending copies to recipients, TaxBandits takes care of it all.

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Request a W-9 for Free

Request a W-9 from recipients involved in digital asset transactions to prepare for 1099-DA filing.

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Multiple Data Import Option

Choose the flexible data import options to import your filing data into our system to complete your filings.

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Data Validations

Our system automatically checks your forms against IRS Business Rules to help reduce errors and rejections.

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Recipient Copy Distribution

Send recipient copies via postal mail, secure online access, or both to stay compliant and file on time.

Solutions Built for Tax Pros & High Volume Filers

Instant Notifications

PRO Account

Create a TaxBandits PRO account and seamlessly manage high-volume 1099-DA filings within a secure, cloud-based solution.

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API Integration

Integrate TaxBandits with your software to automate W-9 collection, transaction mapping, and IRS filing directly from your existing system.

Frequently Asked Questions On Form 1099-DA

Who must file Form 1099-DA?

Form 1099-DA must be filed by U.S. digital asset brokers who sell digital assets on behalf of others. This includes those who redeem assets they issued or act as
agents or dealers.


What are the penalties for not filing Form 1099-DA?

Late filing penalties for Form 1099-DA range from $60 to $340 per form, depending on how late you file. If you intentionally fail to file, the penalty increases to
$680 per form, with no maximum limit.


What are widely held fixed investment trusts (WHFITs)?

A WHFIT is a type of investment trust where many investors hold an interest, and a trustee or middleman manages the assets. Each investor is referred to as a
Trust Interest Holder (TIH).


Why is it important to collect W-9 Forms before filing 1099-DA Forms?

Collecting Form W-9 before filing Form 1099-DA is essential because it provides the necessary information to report digital asset transactions accurately to the IRS. The W-9 form captures key details such as the recipient’s legal name, address, and Taxpayer Identification Number (TIN) or Social Security Number (SSN), all of which are required when filing a 1099-DA.

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