Starting in 2025, if you trade crypto on any U.S.-based exchange, you’re going to get a new tax form. It’s called 1099-DA, and it’s changing how millions of people report their crypto gains and losses. This isn’t just a paperwork update-it’s a full overhaul of how the IRS tracks digital asset transactions. For years, crypto investors had to piece together tax records from different exchanges, each using its own format. Some sent 1099-B forms, others sent 1099-MISC, and a lot sent nothing at all. Now, there’s one standard. And it’s coming fast.

What Is Form 1099-DA?

The IRS created Form 1099-DA to bring cryptocurrency reporting in line with traditional stock trading. For decades, investors in stocks and ETFs received Form 1099-B, which showed exactly what they sold, when, and for how much. Crypto investors never had that. Now they do. Form 1099-DA stands for Digital Asset Proceeds from Broker Transactions. It’s mandatory for any exchange or platform that acts as a broker to U.S. customers. That includes Coinbase, Kraken, Binance.US, and others that handle trades, staking, or NFT sales.

The form reports two key things: the total amount you received from selling or exchanging crypto (gross proceeds) and the date of each transaction. For the 2025 tax year, brokers will only report gross proceeds. That means you’ll still need to track your original purchase price-your cost basis-yourself. Starting in 2026, exchanges will be required to report both gross proceeds and cost basis. So if you’re filing your 2025 taxes in April 2026, you’ll get a 1099-DA with sales numbers but no purchase prices. You’ll have to dig into your wallet history or trading logs to fill in the rest.

Who Gets a 1099-DA?

You’ll get one if you used a U.S.-based crypto exchange and sold, traded, or exchanged digital assets worth more than $10,000 in 2025. That includes:

• Selling Bitcoin for U.S. dollars
• Swapping Ethereum for Solana
• Cashing out staking rewards as crypto
• Selling an NFT you bought on OpenSea or Foundation

Here’s what doesn’t count: peer-to-peer trades on platforms like Bisq or local Bitcoin ATMs, DeFi swaps on Uniswap or PancakeSwap, and transfers between your own wallets. Those don’t trigger a 1099-DA because they aren’t handled by a broker. But that doesn’t mean they’re tax-free. The IRS still expects you to report those. The form just makes reporting easier for centralized exchange users.

What’s Different From Before?

Before 2025, crypto tax reporting was a mess. About 60% of major exchanges issued 1099-B forms starting in 2023, but they didn’t always include cost basis. Some just listed the sale amount. Others used 1099-MISC for staking rewards over $600. And if you used multiple platforms-say, Coinbase for BTC, Kraken for ETH, and Binance.US for altcoins-you got three different formats. That meant hours of manual work to reconcile everything.

Now, every broker must follow the same rules. The form looks like a 1099-B but with crypto-specific fields. You’ll see:

• Broker name and tax ID
• Date of each sale or exchange
• Asset type (BTC, ETH, SOL, etc.)
• Gross proceeds (total dollars received)
• Transaction type (sale, exchange, etc.)

For NFTs, there are two separate 1099-DA forms: one for the first sale of an NFT (like minting and selling your own artwork) and another for resales. This matters because first-sale NFTs may have different tax treatments under IRS rules.

What You Still Need to Track Yourself

Even with the 1099-DA, you’re not off the hook. The form doesn’t cover everything. You still need to keep records of:

• When and how much you bought crypto (date, price, amount)
• Transfers between wallets (especially if you moved crypto to an exchange)
• DeFi transactions (liquidity pools, yield farming, swaps)
• Gifts or donations of crypto
• Hard forks and airdrops

Why? Because the 1099-DA doesn’t report cost basis until 2026. That means for your 2025 taxes, you’ll need to calculate your profit or loss manually. If you bought 0.5 BTC for $25,000 in January 2024 and sold it for $40,000 in March 2025, your gain is $15,000. But if your exchange doesn’t show that $25,000 cost basis on the 1099-DA, you’re responsible for proving it. The IRS doesn’t care if your broker got it wrong. You’re on the hook.

The IRS recommends using the first-in, first-out (FIFO) method if you can’t prove your cost basis. That means the first coin you bought is the first one you sold. But if you keep detailed records, you can pick specific coins to sell-like choosing the ones with the lowest gain to minimize taxes. Just make sure you document it.

What Happens If You Don’t Get a 1099-DA?

Not getting a form doesn’t mean you don’t owe taxes. The IRS says clearly: You must report all crypto transactions even if you don’t receive a 1099-DA. That’s because not every crypto activity triggers a broker report. If you used an offshore exchange like Binance.com (not Binance.US), you won’t get a 1099-DA. But if you sold crypto for profit, you still owe tax.

The IRS has tools to catch you. They’re matching 1099-DA data with tax returns. They’re also using John Doe summonses to get user data from exchanges. If you filed a return without reporting crypto gains and didn’t get a 1099-DA, you’re still at risk. The IRS already collected $1.2 billion in crypto-related taxes in 2023, and they’re ramping up enforcement.

How to Prepare for 2025 Taxes

Here’s what to do now:

1. Log into every exchange you used in 2025 and download your transaction history. Look for CSV or Excel files.
2. Match your purchase records with your sales. Use a spreadsheet or tax software like Koinly, CoinTracker, or TurboTax Crypto.
3. Identify which transactions are taxable-sales, trades, staking rewards, NFT sales. Transfers between your own wallets aren’t taxable.
4. Calculate gains and losses using FIFO or specific identification. Keep receipts of purchase prices.
5. File Form 8949 and Schedule D with your 1040. These forms break down each crypto transaction.

Most people who use tax software can get through this in 3-5 hours. Without it? You could spend 20+ hours. Reddit threads are full of stories like: “I used five exchanges. Got three different 1099 formats. Spent a month fixing it.” Don’t be that person.

What About NFTs?

NFTs are treated as property by the IRS, not collectibles. That means capital gains rules apply. If you bought an NFT for $1,000 and sold it for $8,000, you owe tax on $7,000. If you minted an NFT and sold it, the sale is treated as income, not capital gain. That’s a big difference. You’ll pay ordinary income tax rates, not the lower long-term capital gains rate.

Exchanges that handle NFT sales will issue a separate 1099-DA for first-sale NFTs and another for resales. You’ll need to report both. Keep minting receipts, gas fees, and marketplace fees. Those can reduce your taxable income.

What’s Coming Next?

By 2027, the IRS plans to integrate crypto reporting directly into Form 1040. That means you’ll see a crypto section right next to your stock and bond income. No more separate Schedule D. That’s the end goal: make crypto taxes as simple as filing stock trades.

But we’re not there yet. The next two years will be rocky. Experts predict a 25-30% spike in amended returns as people discover mismatches between their records and broker reports. One user on the IRS2Go forum lost $1,200 in penalties because his Kraken 1099-B showed a different cost basis than his manual logs. That’s why keeping your own records isn’t optional-it’s your only defense.

By 2026, when cost basis reporting kicks in, things should get smoother. But even then, if you use multiple exchanges, you’ll get multiple 1099-DA forms. You’ll still need to consolidate them. That’s where tax software helps.

Final Thoughts

The 1099-DA isn’t a gift. It’s a tool. It makes reporting easier for people who stick to one exchange. But for everyone else-those who trade across platforms, use DeFi, or hold NFTs-it’s just one piece of the puzzle. The IRS isn’t trying to make crypto taxes harder. They’re trying to make them fairer. And they’re serious about collecting what’s owed.

Don’t wait until April. Start organizing your records now. Download your trade history. Track your purchases. Use software if you need to. And remember: if you didn’t get a 1099-DA, you still owe taxes. The IRS knows what you did. They just want you to pay up.