The IRS recently posted the highly anticipated draft Form 1099-DA on its website, which brokers will use to report digital asset transactions.
The tax agency teased the forthcoming tax form last August when it issued proposed regulations requiring brokers to report sales and exchanges of digital assets by customers.
Brokers — defined by the IRS as “digital asset trading platforms, digital asset payment processors, and certain digital asset hosted wallets” — will need to generate Form 1099-DA for each sale transaction and submit that information to the IRS and to their customers starting on Jan. 1, 2025.
Draft form 1099-DA captures unsurprising data points, such as date acquired, date sold, proceeds and cost basis of crypto assets sold — information needed for the taxpayer to complete their crypto tax filings.
The IRS noted that the early draft form may change based on decisions made in response to comments received on the proposed regulations issued last August. Learn more.