E-file Form 1099-DA Online to Report Digital Asset Transactions

Digital asset brokers and other persons treated as brokers under the applicable reporting rules may be required to file Form 1099-DA. This can include persons who effect customer dispositions as an agent, dealer, or digital asset middleman, as well as certain persons who regularly offer to redeem digital assets they created or issued.

Form 1099-DA reporting applies to digital asset sales effected after 2025. Brokers must report gross proceeds for digital asset sales, while cost or other basis reporting is required for digital assets that are covered securities. Basis reporting for noncovered securities is voluntary.

• Gross proceeds reporting applies to digital asset sales
• Basis reporting is required for covered digital assets

Click here to learn more about the 2026 Form W-2 changes.

If you are a payer, you are required to file Form 1099-DA for each recipient using the following information:

• Payer information such as Name, Address, EIN/SSN
• Recipient information such as Name, Address, EIN/SSN
• Interest and premium paid to the recipient
• Federal income tax withheld
• State and local information such as State number, taxes withheld

If you have the information available for reporting 1099-DA, get started with TaxBandits and file Form 1099-DA electronically with the IRS.

The payer must complete 4 copies when filing Form 1099-DA:

• Copy A must be filed with the IRS.
• Copy 1 must be filed with the State tax department.
• Copy B must be furnished to the recipient.
• Copy 2 must be filed with the recipient's state income tax return when required.

Choose TaxBandits for filing the 1099-DA Form. We file with the IRS and mail recipient copies of
Form 1099-DA.

Form 1099-DA is due to the IRS by March 1, 2027, for paper filing and March 31, 2027, for electronic filing. Recipient statements are generally due by February 16, 2027.

The IRS may charge $60 to $340 per return for late or incorrect Form 1099-DA filing. Intentional disregard can result in a penalty of $680 or more per return, with no annual maximum.

The other tiers are capped annually — for returns due in 2027, $244,500 to $1,397,000 for small businesses (average annual gross receipts of $5 million or less) and $698,500 to $4,191,500 for larger filers. Amounts are indexed for inflation each year.

Learn more about 1099-DA penalties

To request an extension, file Form 8809 with the IRS on or before the original due date. This extension isn't automatic and is granted only in specific circumstances, which must be explained on the form. If you need more time to furnish recipient copies specifically, file Form 15397 by the original due date.

Form 1099-DA is specifically designed for reportable digital asset transactions, while Form 1099-B generally reports proceeds from broker and barter exchange transactions. The correct form depends on the transaction and applicable reporting rules, and the IRS provides separate instructions for each form.

For digital assets that are also treated as securities, the applicable IRS reporting rules determine which information return should be used.