The U.S. Internal Revenue Service has clarified how broker reporting for digital asset transactions will work in the first years of the new 1099-DA regime, according to Cointelegraph. For trades made in 2025, brokers generally must report gross proceeds from digital asset sales, but in most cases they will not yet be required to report cost basis. That leaves taxpayers responsible for calculating their own gains and losses when filing returns. The IRS said brokers will begin reporting cost basis for eligible digital assets starting in 2026.
The agency also said taxpayers must still report digital asset income, gains, and losses even if they do not receive a Form 1099-DA. The guidance comes as U.S. investors move through the first tax season in which the crypto-specific reporting framework applies. Some filers are running into missing transaction records and difficulty verifying cost basis data. A survey conducted by Awaken Tax in August of 1,000 U.S. crypto investors found that 21% of respondents who had already filed or planned to request an extension were still waiting for needed information from exchanges or crypto platforms. About 20% said their 1099-DA forms were incomplete or that they were unsure whether the forms accurately reflected their trading activity.
According to Cointelegraph, the U.S. Internal Revenue Service said brokers generally must report gross proceeds from digital asset sales for 2025 transactions, but in most cases do not yet have to report cost basis. Taxpayers still need to calculate their own gains and losses.
Beginning in 2026, brokers will be required to report cost basis for eligible digital assets. The IRS also said taxpayers must report income, gains, and losses tied to digital assets even if they do not receive a Form 1099-DA.
First 1099-DA tax season exposes reporting gaps
During the first U.S. tax season to apply the crypto asset 1099-DA reporting rules, some investors are facing missing transaction data and difficulty reconciling cost basis information.
An August survey by Awaken Tax of 1,000 U.S. crypto investors found that 21% of respondents who had already filed taxes or planned to request an extension were still waiting for required information from exchanges or crypto platforms. About 20% said the information on their 1099-DA forms was incomplete, or that they were unsure whether it accurately reflected their transactions.
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